Business Entities

You have three clients that are all starting businesses and are asking your advice on what corporate form (if any) to use. Please note you are expected to add additional research and not just answer from information only in the book. You also must cite your sources.

Write out what you would tell your clients structured as overall information and advice that you will tell all three, following by specific advice for each unique client scenario.

The following questions 1 through 7 will be answered only once as it will be the overview and information that you provide all three clients regardless of their situation and scenario (so only type this part out once):

1. A brief overview of the legal entities that a firm can take. One to two pages, 100 points

1. What is the relative use of each form of a business in United States and how that has changed over time (This will require research and be sure refer to and cite your sources) One to three paragraphs and chart(s) and/or graph(s), 50 points

1. Why would someone use an LLC instead of a S-Corporation? Include in your answer the limitations on who can own an S Corporation. Two paragraphs to a one page, 50 points

1. What form or form of business is immediately not applicable if they want to protect their personal assets from any financial risk and explain why. Two paragraphs to a one page, 50 points

1. Explain how they can legally use more than one name for their firm by filing a DBA (doing business as also known as a fictitious name statement) and what that filing process entails. Approximately to one page, 50 points.

1. What business form do venture capitalists typically prefer and why? Approximately page, 40 points.

1. What business form are the companies that trade on the publicly traded exchanges (such as NASDAQ or NY Stock Exchange) and why. Approximately page, 40 points.

Note: 1 thru 7 above you only need to write out once at it will be the same for each scenario.