John and Jacob would like to establish a small business. They will be the sole owners of the entity, and will each contribute 50% of the capital. They would like to manage the business jointly and would like to share in the profits jointly. They are optimistic about their new venture but, just in case, they would like to protect their personal assets from any liability that results from the debts of the business. What do you advise them to do?

Group of answer choices

a Establish a member-managed limited liability company and file articles of organization with the state.

b Establish a manager-managed limited liability company and file articles of incorporation with the state.

c Establish a corporation and work towards an initial public offering.

d Establish a general partnership, which does not require filing with the state.

A, B, and C establish an LLC. They will each own one-third of the membership interests. A contributes $10,000 cash. B has already set up the store and created a marketing plan for the company, and estimates the value of her services to be $10,000. C contributes a used delivery truck, with a value of $10,000. Which of the three has made a permissible capital contribution to the company?

Group of answer choices

a All three. All three contributions are permissible.

b A and B, because a truck is not capital, and therefore C did not make a permissible contribution to the LLC.

c A and C, because services are not capital, and therefore B did not make a permissible contribution to the LLC.

d A only, because neither of B nor C contributed something that can be considered capital.