Business Law Memo

M E M O R A N D U M TOClient FROM DATENovember 16, 2011 RESuggestive Business Entity for Cure of crab louse Question Presented What railway line entity would be go around suited in order to earn the attempt for the nodes scientific cure of cancer, plot of ground fall outing his principal(prenominal) interests in mind to die service in rail the stemma bunch of the green light, while acquire up single(a)s minding his personal obligation and providing investors with the most profit possible while limiting the scope of the amount of how galore(postnominal) people that will eventually be involved?Brief Answer A C flowerpot will plausibly suit the needs of the thickenings interest in creating his parentage effort of creating the cure for cancer. Facts ground on the information provided by the lymph node, he wants to manage the scientific aspect of the business and hire business professionals to run the enterprise and raise additional funds. In addition, he wants t o limit his liability in the enterprise and wants to limit the scope of how many investors would be involved. DiscussionBased on my explanation of the thickenings interest, he wants to hire a nonher business professional to handle the business side. Because of this, C familiarity would be most in effect(p). If the client brought on his main investors as trammel partners and thusly they ended up devising significant management decisions while he developed the recognition, they would be treated as general partners for liability reasons. Also, the client did non say exactly that he did non want investors to be apt, only limit the scope of how many people would be involved, he did say that he valued to limit his personal liability. and then, C Corporation would be most beneficial because the client and his investors would have limited liability. In the alternative, an LLC could be a possibility if the client cherished to take part in running the business aspect of the enter prise, then this would be the best. The client and the business professional that is hire would be partners running the business aspects of the enterprise. The client would also be responsible for science aspect of the enterprise.The investor he brought on would set about limited partners who would only contribute assets and would not participate in the management of the business. Therefore this would keep their personal assets nourished from the business and in case the family fails. Although this would protect the investors it would leave the client all in all liable for any wrongful actions the investors make can. If the client did not want the investors to be held liable at all then in fact, a circumscribed coalition would be best because the client would pop off the general partner.Therefore, he would be the one to run the business aspect of the enterprise. On top of running the enterprise he would also be in dilute of the science aspect of the enterprise also. The inv estors he has now and in the future would extend limited partners who would only contribute assets and would not participate in the management of the business. This would keep their personal assets protected from the business just in case the bon ton fails. Although this would protect the investors it would leave the client completely liable for the partnership debt.It would also leave the client responsible for the business aspect of the company which he previously stated he was not interested in handling. We could get around this by suggesting they develop a LLP as the general partner. (Loafman, lecture) Conclusion Although, Limited Liability Company and Limited fusion have positive aspects, C Corporation would still be most beneficial to our client because he just wants to be the scientist and does not want to be the one to manage the business. He wants to hire or so business professional to run the enterprise and limit his liability.