John and Mary are married. After working for various businesses they are ready to live their dream
Question:
John and Mary are married. After working for various businesses they are ready to live their dream of having their own business. They have saved $100,000, have settled on opening a business that makes widgets and have prepared a business plan. They both plan to design the widgets and hire employees to prepare and assemble the products. Mary will keep the books, and John will do the hiring. At this time they anticipate hiring just one other employee in the beginning, and hire more as the business grows. They also anticipate the need for additional financing and therefore brining in investors though they would ike to keep control of the business, if possible at the same time. .Regarding the operation of the bubsiness, they want to run the business jointly with no Board of Directors or other advisory group. Not surprisingly, John and Mary are also concerned about expenses. In the short term so they want to establish their business with a minimum of paperwork. In the long term they hope to earn profits and minimize taxes. For this activity, we will discuss what form of business organization makes the most sense for them: a sole proprietorship, a partnership, or limited liability entitity. Each of you pick a different form of available business entity and explain what are the pros and cons of that entity as it applies to John and Mary's business goals.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts