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.

Learning Activity

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:

· General Partnership

· Limited Partnership

· Limited Liability Partnertship

· General Corporation

· Limited Liability Company

Evaluate and synthesize this information,   and do the following. ( Label all parts.)

A.  Create a hat 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 the GC   owners:

1.  recommending a business structure   for GC that best minimizes tax and personal liability for the new business   and its owners

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