Advise three partners as they set up their business. You are not giving legal advice, you are simply using what you have learned to counsel three real people (who should of course also talk to a lawyer) to help them avoid problems and give them a greater chance of success. The following are some of the questions sophisticated business people and lawyers should ask at this early stage. Put them to use in helping these guys avoid the disaster that is waiting to fall on their heads. IDENTIFY 4 PROBLEMS THAT CAN OCCUR IF THEY JUST RUN A RESTAURANT WITHOUT PLANNING/SETTING UP AN ENTITY (PROBLEM, CAUSES, AND HOW IT COULD HAVE BEEN AVOIDED) What should they be doing right now to protect themselves as they go about setting up their new Restaurant business? Youve learned that acting before an entity is formed and being a promoter for an entity can be risky. How about minimizing the risk? They probably want limited liability protectionwhat do they need to do to ensure that courts do not pierce the veil of their limited liability? What entity should they form, and where? General partnership, limited partnership, limited liability partnership, limited liability company, or what? Where would they want to register it? How difficult will it be to set it up? Are there tax implications they should think about? What should they consider when they are putting together the capital structure of the business? One partner, is putting in more money. The second plans on spending more time in the business. Last partner is supplying his dads connections. They seem to want to be equal owners, but its possible to see that problems might arise. Is there a way to reward Scott for his extra money contribution and Bill for his extra work? What measures should be put in place to control the organization? Somebody has to be in charge. Which one? What mechanisms can they use to make sure that they always knew whos in charge of what in the business? What steps should they take to direct and reward their employees to make sure they do a good job? Obviously they couldnt predict that the GM (one of the partners dads)., for example, would be a disaster, but employees sometimes turn out badly. How could they minimize that problem? What happens if they find out theyre not getting along? Note we have three equal owners. What happens if two of them decide to exclude the other so that he is frozen out of his investment?nt