Background: Connor, Ali, Madison, and Sam recognize an important early step in creating GC is to agree on a business organizational form and clarify their roles because each has different priorities and interests about what they expect and want from 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 business and its owners.
The goal for GC is to minimize legal risks and liabilities, as well as tax liabilities, for the owners and the business. The owners understand a business organizational structure can achieve this goal, and can define their managerial roles and responsibilities clearly to satisfy their interests and maximize their areas of expertise.
Connor, Ali, Madison, 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 Green Clean business structure.
Instructions: To assist in this process, Winnie and Ralph asked you to assess several business structures and their characteristics, advantages and disadvantages for Green Clean. Those structures are:
Limited Liability Partnertship
Limited Liability Company
Evaluate and synthesize this information, and do the following. ( Label all parts.)
A. Create a comparison matrix that shows the 5 types of business structures and compares and contrasts type of structure. You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.
B. Write a memo to Winnie and Ralph to be discussed with GC owners:
1. recommending a business structure for GC that best minimizes tax and personal liability for the new business and its owners
2. explaining and justifying your recommendation, specifically and in detail.
TO: Winnie James, Ralph Anders
FROM: (your name)
RE: Green Clean Business Structure
Use correct, complete sentences, in paragraph format.
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