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Kevin, Sean, and Chris have agreed to do business together as landscapers, but they are uncertain as to whether they should form a general partnership
Kevin, Sean, and Chris have agreed to do business together as landscapers, but they are uncertain as to whether they should form a general partnership or a limited partnership. Chris knows nothing about the landscaping but has $100,000 in cash to contribute if he deems the venture a good investment. Kevin and Sean have worked as landscapers for the past twelve years, so they know the business well. However, neither have much cash to contribute to the business.
- Advise these three individuals as to whether a general partnership or a limited partnership would best suit their needs.
- Begin by first explaining the pros and cons of each business entity.
- Afterward, discuss any factors each should consider before moving forward.
- If each had about the same amount of money to contribute, would your advice be different? Why or why not?
Please be sure to validate your opinions and ideas with citations and references.
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