HELP with a Business Structure Report

You are employed as a junior legal research team member at XYZ Corporation. The company has been asked to review several business scenarios for clients regarding possible business structures. You have been given the task of gathering some introductory information on the topic, as well as

producing a report that reviews the clients' options for legal structures for their new companies. I need help with a summary document that

explains legal business structures with descriptive bullets for each of the five types presented (sole proprietorships, partnerships, limited liability partnerships, limited liability corporations, and corporations).

Review the clients' scenarios and use the template provided to construct a section of the report for each client that reviews the options for legal structures for the client's company. For each scenario, be sure to address the following in your report:

Choose which type of business structure would be most appropriate for the situation.

List pros and cons of the recommended structure.

List the steps required for creating this type of business structure.

Include legal considerations and examples of related legal issues, including personal liability

and taxes, as well as profit distribution, if applicable.

Scenario 1

Karen and Alex have worked together to make a concept to form a website development company. For this, they have asked three associates to invest their own money in the business in return for receiving a percentage of the profits. The three investors will not need to be involved in any of the day-to-day management or conducting of business in the proposed company.

Legal Business Structure Recommendation: For this scenario, the recommended legal business structure is which? Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Corporation, or Corporation?

Pros and Cons: List the pros and cons of the recommended structure.

Requirements: List the steps required for creating this type of business structure.

Legal Considerations: Explain any legal considerations and describe examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.

Scenario 2

A few years ago, Anika started a skateboard company called Wheels Up and she has run it as a sole proprietorship. Wheels Up has operated successfully, creating a sizable workforce and management team; however, a market opportunity has surfaced that could create significant

and sustainable growth. Anika wants to change the structure of her business. She is in negotiations with venture capitalists who are interested in investing in the company. She also has two employees, Sandra and Geoff, who are so integral to the company that she wishes they had more of a stake in it.

Legal Business Structure Recommendation: For this scenario, the recommended legal business structure is which? Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Corporation, or Corporation?

Pros and Cons: List the pros and cons of the recommended structure.

Requirements: List the steps required for creating this type of business structure.

Legal Considerations: Explain any legal considerations and describe examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.

Scenario 3

George would like to start a landscaping business and call it Landscaping by George. The business would require the use of heavy equipment, a large truck with a hydraulic lift, and an open trailer. Because of that, he is fearful of causing an accident and getting sued. He is mainly concerned about reducing the risk of losing his house and other personal assets because of something that happens with the business.

Legal Business Structure Recommendation: For this scenario, the recommended legal business structure is which? Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Corporation, or Corporation?

Pros and Cons: List the pros and cons of the recommended structure.

Requirements: List the steps required for creating this type of business structure.

Legal Considerations: Explain any legal considerations and describe examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.

Scenario 4

Jose has started a website where he sells products that he designs and produces himself, such as T-shirts, coffee mugs, bumper stickers, and other similar items. He wants to make a business based off this website and is hoping to do so in the least complicated way possible.

Legal Business Structure Recommendation: For this scenario, the recommended legal business structure is which? Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Corporation, or Corporation?

Pros and Cons: List the pros and cons of the recommended structure.

Requirements: List the steps required for creating this type of business structure.

Legal Considerations: Explain any legal considerations and describe examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.

Scenario 5

Deborah owns a bakery that is best known for her specialty cupcakes. Her most important ingredients are the gourmet chocolates Theo produces in his candy shop. They would like to form a business structure together that helps them to market both of their brands and make consumers aware of the importance of the relationship of their products.

Legal Business Structure Recommendation: For this scenario, the recommended legal business structure is which? Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Corporation, or Corporation?

Pros and Cons: List the pros and cons of the recommended structure.

Requirements: List the steps required for creating this type of business structure.

Legal Considerations: Explain any legal considerations and describe examples of related legal issues, including personal liability and taxes, as well as profit distribution, if applicable.