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Business Structure & Limited Liabilities Since They Invite Investors Essay

Business Structure & Limited Liabilities Since They Invite Investors Essay

 Business Structure & Limited Liabilities Since They Invite Investors Essay

If you were asked to recommend a legal business structure for someone’s business, do you feel equipped with the knowledge to provide sound advice? The person asking you would want to know the benefits and drawbacks of each structure and be able to determine which one fits the need. They also would want to understand any legal considerations involved and the steps it would take to create the structure.

For this Assignment, you will have a chance to provide that recommendation by assuming the role of a junior legal research team member at XYZ Corporation. The Company has been asked to review several business scenarios for clients regarding possible business structures. You have been given the task of gathering some introductory information on the topic, as well as producing a report that reviews the clients’ options for legal structures

By Day 7

Submit your report containing recommendations for appropriate legal structures for the five clients’ business types. For each scenario, address the following in your report:

  • Choose which type of business structure would be most appropriate for the situation.
  • List pros and cons of the recommended structure.
  • List the steps required for creating this type of business structure.
  • Include legal considerations and examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.
Scenario 1

Karen and Alex have worked together to create a concept to form a website development company. To do this, they have asked three associates to invest their own money in the business in return for receiving a percentage of the profits. The three investors will not need to be involved in any of the day-to-day management or conducting of business in the proposed company. (225–300 words, 3–4 paragraphs)

Scenario 2

A few years ago, Anika started a skateboard company called Wheels Up and she has run it as a sole proprietorship. Wheels Up has operated successfully, creating a sizable workforce and management team; however, a market opportunity has surfaced that could create significant and sustainable growth. Anika wants to change the structure of her business. She is in negotiations with venture capitalists who are interested in investing in the company. She also has two employees, Sandra and Geoff, who are so integral to the company that she wishes they had more of a stake in it. (225–300 words, 3–4 paragraphs)

Scenario 3

George would like to start a landscaping business and call it Landscaping by George. The business would require the use of heavy equipment, a large truck with a hydraulic lift, and an open trailer. Because of that, he is fearful of causing an accident and getting sued. He is mainly concerned about reducing the risk of losing his house and other personal assets because of something that happens with the business. (225–300 words, 3–4 paragraphs)

Scenario 4

Jose has started a website where he sells products that he designs and produces himself, such as T-shirts, coffee mugs, bumper stickers, and other similar items. He wants to create a business based off this website and is hoping to do so in the least complicated way possible. (225–300 words, 3–4 paragraphs)

Scenario 5

Deborah owns a bakery that is best known for her specialty cupcakes. Her most important ingredients are the gourmet chocolates Theo produces in his candy shop. They would like to form a business structure together that helps them to market both of their brands and make consumers aware of the importance of the relationship of their products. (225–300 words, 3–4 paragraphs)

Note: Be sure to reference at least one scholarly source for each scenario in your report to support your work.


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