What level of liability exists in the operation of the business based on the type of business itself?What is the best form to insulate owners from personal liability?
Create a Matrix chart,Assignment: Corporate Organization
1. Cost: what are the comparative costs of se$ng up?
2. Ease: what are the rela!ve costs for se$ng up each?
3. Termination: what is the state requirement for continuity?
4. Public Information: how important is it that your personal information is shared or not shared with the public
5. Risk: what level of liability exists in the operation of the business based on the type of business itself?What is the best form to insulate owners from personal liability?
6. Operation: what form best supports the intentions of the owners? What is the best control risk balance form of operation?
7. Capitalization: is there a risk of undercapitalization? What would be the impact?Will there be a need to raise capital to avoid increased liability? Is there a form that makes it easier to raise capital?
8. Selling: if owners wish to sell,what form best accommodates that situation
9. State Taxes: what are the tax liabilities from the state in se$ng up the business
10. Expansion: which form provides the best flexibility in the event of expansion