Fossil Inc. clothing and accessorys Legal Structure Essay

Fossil Inc. clothing and accessorys Legal Structure - Essay Example a  partnership  ran by two or more people.  Also, another option is an incorporated company where business activities  are incorporated  into a company, which bestows  life  on business as a separate legal person (Mancuso 4). The Fossil inc. Clothing and Accessory is a  design, development, marketing and distribution, company that focuses on consumer products predicated on fashion and  value  such as sunglasses, watches, and leather goods among others, for retail sale on an international basis. Fossil Inc. is an incorporated  business  since it  is formed  on a corporation. Incorporating a business provides a liability  protection  and  considerable  tax advantages. The business can  move  on despite the death or bankruptcy of shareholders or  management. Moreover, it offers the best  means  of  expansion  and the provision of  outside  investors. Fossil Inc.  is under the ownership  of two brothers; Tom and Kosta Kartsotis who own about 30% of Fossil stock. In 1993, the Fossil Inc. sold 20% of the company to investors, but Tom retained 40.5% control over the  company  while his brother retained 18.8% ownership. According to Richardson (1), initial public offering of  stock  (public ownership) yielded $19 million, which Fossil Inc. used half of it to reduce the company’s  debt  and the other half to be kept as working capital. Additionally, in 1993, Fossil Inc. had  several  subsidiaries in Europe, led by Fossil Europe GmbH i.e. the company’s  primary  European  operation  in Germany. Other subsidiary companies of Fossil Inc. included Fossil Italia SRL and Fossil France SARL, which served as Fossil’s marketing, as well as distribution entities in those countries.  In addition, Fossil B.V., formed in 1993, stood as a company holding for the three European subsidiaries, where Texas-based Fossil Inc. controlled 70 per cent of the newly formed European holding Company (International Directory of Company Histories 1). In 1994, Fossil Inc. was able