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 follow in your opinion?

1. Do you want the business to be a short-term endeavor, lifetime enterprise or a company that lasts beyond your life?
2. Do you want to start an enterprise where you are always one of the chief operators of the company or do you want to have flexibility in the future, if the business reaches a certain point, to let others operate and you move to an advisory role, or serve as a director, while retaining your equity stake?
3. Do you want to avoid the phenomenon of double taxation where the company first gets taxed on certain income and then the shareholders get taxed again?