Connor, Denise, Larisa, and Sam recognize an essential early step in creating Viral Clean ('Clean") is to agree on a business organizational form and clarify the owners'  roles because each has different priorities, interests, and expectations about the business.

Businesses are created in one of several organizational structures or forms.  Choosing a business structure involves several factors, including which structure is most favorable for the company and its owners.  

The goal for Clean is to minimize legal risks and liabilities and tax liabilities for the owners and the business.  The owners understand a business organizational structure can achieve this goal and define their managerial roles and responsibilities clearly to satisfy their interests and maximize their areas of expertise.

Connor, Denise, Larisa, and Sam agree that weighing and balancing advantages and disadvantages for the company and its owners is the heart of the process of choosing a business structure.   The owners have met privately to discuss their decision.   They are now ready to meet with TLG for further analysis, negotiation, and a decision regarding the Clean business structure.

To assist in this process, Winnie and Ralph asked you to assess several business structures and their characteristics, advantages, and disadvantages for Clean.  Those structures are:

• General Partnership
• Limited Partnership
• Limited Liability Partnership
• General Corporation
• Limited Liability Company

Answer rating: 100% (QA)

Choosing the right business structure for Clean is a critical decision as it will impact the legal tax and operational aspects of the business Heres an assessment of the various business structures an... View the full answer