Reference no: EM133192440 , Length: 1 page
Question: A owns land located on the southwest corner of U.S. 30 and Kline Avenue in Squareville. For the past five (5) years the land has been leased by Nobil Oil Company. The lessee has operated a gasoline station at that location. The lease expired on 12/31/2021 at which time A opened a pizza parlor on the premises in spite of warnings from his attorney regarding the potential liability associated with leaky underground storage tanks (LUST in common parlance).
B hit the lottery two (2) months ago and now considers himself independently wealthy. It's probably a good thing in that he was tired of working for a living. He now spends his time watching a lot of television. At night he can be found at the casinos perfecting his blackjack strategies. He always keeps his eye out for a good investment.
C is an entrepreneur whose latest venture of perfecting sealing wax (you will recognize that phrase from one of the Rolling Stones' lyrics) forced him into an involuntary petition in bankruptcy. He has recently developed a recipe for what he believes to be the best tasting pizza on the planet. In fact, that's what he named his parlor, "The Best Tasting Pizza On The Planet". He is looking for investors.
B and C are mutually acquainted.
A currently operates his business as a sole proprietorship.
While watching the SupperBowul, A, B, and C agree as follows. C will divulge his secret formula to A. C and A will actively operate the business. B will invest $100,000.00 but will not participate in management.
On 5/1/20/2020, A came to visit your office and sought your advice regarding the current form in which he is conducting business (a sole proprietorship). He wants to know the advantages and disadvantages of operating in this form.
On 5/2/2020, A, B, and C came to seek your advice on changing the form of the business entity. The entity will be a continuation of A's efforts to date.
Discuss the various alternatives available citing at least three (3) advantages and disadvantages of each choice of forum. (Response should only cover the following entities: General Partnership, Limited Partnership & Limited Liability Company)