Week 1 Discussion
Scenario 2 – Forms of Business Organizations
Nick and Mitch are partners in a successful lawn care business and are considering the possibilities of expansion. Mitch has been attending college to study accounting. Mitch would like to cut back on his landscaping responsibilities when he graduates to take on a full time job in accounting; however, he could manage the financial affairs of the partnership.
Nick suggests that they hire Tracy to join the partnership because he is younger and could pick up the work Mitch was doing. Nick and Mitch currently operate as a general partnership. When the partners talk with Tracy, he suggests that he would like to become a full partner.
How would you advise Nick and Mitch when they come to you for advice about the best type of business organization for their landscaping business? Explain your reasoning.
Consider at least one limited liability option in your response, such as the LLC or LLP.
Discussion Question Part II
Select any form of business organization studied this week and create a business that sells at least one tangible product, such as books or food, or provides a service, such as pet grooming or daycare. You will continue to build this business each week. In two to three paragraphs provide the following information about your business.
Name of business
Description the product or service and why it was selected
Location of the principal office–must be in your state
Type of organization (sole proprietorship, partnership, LLC, S corp, etc.) and why that form of organization was selected
Advantages and disadvantages of the form of organization selected
Legal requirements for formation of the business in your state. Cite sources from the state, as applicable.