Spot all the issues and address them, the more issues addressed, the better. (USA BUSINESS LAW)

You and two friends, Brendan and Camille, recently opened a donut shop called You Hoo Donuts. You each contributed $40,000 of your own money to the business and started selling donuts out of a tiny storefront in LA. At this point, the management of the store is very hands on, with you, Brendan and Camille doing the hiring and most of the management personally. Everything is also quite informal: you, Brendan and Camille regularly move funds between your personal bank accounts and Yoo Hoo's, and simply keep track of what you temporarily lend the business before you repay yourselves. You have three employees in addition to the three of you: one delivery driver and two early morning bakers. You are exceptionally irresponsible and nave about liability, so you, Brendan and Camille have never taken any steps to do a particular business organization (such as a limited partnership, corporation, orLLC). You, Brendan, and Camille are convinced that your business will only take off if you expand into the suburban markets, so you've decided to open a second store in San Francisco. The problem is coming up with the money you needed to do it: even if the three of you exhaust your personal savings and borrow as much as you can from banks and family members, you still won't have enough capital. In hopes of attracting investors, you've added a "request for investors" section to your website, and it's working: several wealthy individuals have offered to give you the capital to open and market the new store, in return for a share in the profits.