Professor: Lois Yoder Beier Project 1: Agency and Business Organizations You are a business lawyer specializing in start-up businesses. One day, two new clients, Frugal Fred and Barney Bizarre, enter your office and indicate that they are interested in starting a computer repair/services business in which they will provide complete computer services including systems installations, computer repairs, and systems maintenance for small businesses and consumers. They both plan to be equal owners of the business and to participate in management. Frugal Fred has a substantial imount of money to contribute to the business. However, Bamey Bizarre has limited funds to contribute. At the outset, they will probably handle all aspects of the business Their goal, however, is to grow the business to the point where they may acquire additional employees and investors. Eventually, their plan is to develop the business to the point where their roles are simply to manage the overall operations of the business and to not be involved in the day-to-day servicing of customers They seek your advice on how to begin. What do you tell them? Please advise your clients on the following issues: 1. The choices of business organizations available, including the requirements of each form. Please state all of the advantages and disadvantages of each form from a legal, administrative, financial, tax, as well as operational perspective 2. Which form would you advise best meets Fred's and Barney's needs and why? 3. What role/roles would you recommend Fred and Barney hold in the organization? Please define the available roles and why you chose your recommendation. What possible changes or revisions to the business organization could occur in the future based on business goals of Fred and Barney? What planning suggestions do you have for them? 4. How are Fred and Bamey to compensate you for your services? Professor: Lois Yoder Beier Project 1: Agency and Business Organizations You are a business lawyer specializing in start-up businesses. One day, two new clients, Frugal Fred and Barney Bizarre, enter your office and indicate that they are interested in starting a computer repair/services business in which they will provide complete computer services including systems installations, computer repairs, and systems maintenance for small businesses and consumers. They both plan to be equal owners of the business and to participate in management. Frugal Fred has a substantial imount of money to contribute to the business. However, Bamey Bizarre has limited funds to contribute. At the outset, they will probably handle all aspects of the business Their goal, however, is to grow the business to the point where they may acquire additional employees and investors. Eventually, their plan is to develop the business to the point where their roles are simply to manage the overall operations of the business and to not be involved in the day-to-day servicing of customers They seek your advice on how to begin. What do you tell them? Please advise your clients on the following issues: 1. The choices of business organizations available, including the requirements of each form. Please state all of the advantages and disadvantages of each form from a legal, administrative, financial, tax, as well as operational perspective 2. Which form would you advise best meets Fred's and Barney's needs and why? 3. What role/roles would you recommend Fred and Barney hold in the organization? Please define the available roles and why you chose your recommendation. What possible changes or revisions to the business organization could occur in the future based on business goals of Fred and Barney? What planning suggestions do you have for them? 4. How are Fred and Bamey to compensate you for your services
