March 5, 2012
There are different scenarios with three different forms of entities that require taking control, taxation, and possible liability issues into account. These considerations will not only serve to ensure compliance is met but also so that each establishment is protected. In the first scenario Lou and Jose plan to open a restaurant/sports bar, the issue is that they have not accumulated of the money, but Miriam, a prosperous investor is willing to contribute the funds although she doesn’t have time to be physically involved in the business. In the second scenario Frank happens to be a wealthy investor who has a strategy to open up a chain of exterminating businesses throughout the United States. The third scenario is Akiva and Tara wants to open a licensed obstetrician office, they will take out a loan for startup costs. The fourth and final scenario a construction company is hiring and has specific job requirements that must be met in order to be selected as the final candidate. Restaurant/Bar
Lou and Jose plan to open a sport bar/restaurant, a place where customer will be able to socialize while watching sports on large-screen TVs. The major issue is that Lou and Jose do not have the funds to put these plans to action. But they do know of a wealthy investor Miriam, who is willing to invest her wealth in making the sport bar/restaurant happen. Miriam doesn’t have much time to be involved in the day to day operation but is willing provide capital in return for a percentage of ownership. It is at Lou’s and Jose’s best interest to make their business a Limited Partnership business. A limited partnership is the best option for Lou and Jose since they have one partner who will invest capital but will not participate in management (Cheeseman, 2010). In order to do so Lou and Jose must file for a certificate of Limited Partnership through the secretary of state and...