Jeff and Larry want to enter into a new business venture. The individuals want to pursue a business venture to market a promising item of technology. This item of technology was developed by Jeff, whose background and training as an engineer is wholly technical. Larry has some personal debts which are directly attributable to past business activities, including a debt for past due income and other taxes owed to the government. Larry is devoting his full time and efforts to the pursuit of this business opportunity. Jeff, on the other hand, will be able to devote only 20 to 25 hours per week. By all indications and preliminary testing, this item of technology has the potential to achieve dramatic energy-related cost savings when utilized in connection with existing energy and power sources. Moreover, the technology has application and utility for use in the industrial, commercial, and residential markets, locally, throughout the United States, and internationally, thereby suggesting the potential for rapid expansion of the business.

Describe how you would answer the following?

1. If and when Jeff is able to devote his full time to this project, will his stake in the company increase?
2. Are you seeking venture capital?
3. Do you want to shield the assets of the putative investors, including yourself, from potential personal liability?
4. What kind of liability protection are you looking for in a business?