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Eric wants to partner with Tom Bowers to create the fireworks business. Tom is a retired businessman who is looking for start - up investment
Eric wants to partner with Tom Bowers to create the fireworks business. Tom is a retired businessman who is looking for startup investment opportunities. They both agree as follows: Eric will manage the business and provide "sweat equity" ie his time and labor Tom will be a silent partner who will invest the money necessary to start the business but will not participate in managing it They do not anticipate needing to bring on any additional investors. Obviously, both Eric and Tom want to protect themselves from losing anything more than their investment in the business particularly Tom and both would prefer to pay as little in taxes and keep the business structure as simple as possible. Provide Eric and Tom with your analysis and recommendation for the legal form of business you believe they should choose for the fireworks business. Make sure to explain your reasoning, including explaining why the form you recommend is better than other available forms of business.
Eric wants to partner with Tom Bowers to create the fireworks business. Tom is a retired businessman who is looking for startup investment opportunities. They both agree as follows: Eric will manage the business and provide "sweat equity" ie his time and labor Tom will be a silent partner who will invest the money necessary to start the business but will not participate in managing it They do not anticipate needing to bring on any additional investors. Obviously, both Eric and Tom want to protect themselves from losing anything more than their investment in the business particularly Tom and both would prefer to pay as little in taxes and keep the business structure as simple as possible.
Provide Eric and Tom with your analysis and recommendation for the legal form of business you believe they should choose for the fireworks business. Make sure to explain your reasoning, including explaining why the form you recommend is better than other available forms of business.
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