Reference no: EM132424857

Background: Connor, Ali, Madison, and Sam recognize an important early step in creating GC is to agree on a business organizational form and clarify the owners' roles because each has different priorities, interests, and expectations about the business.

• Businesses are created in one of several organizational structures, or forms. Choosing a business structure involves several factors, including which structure is most favorable for the business and its owners.

• The goal for GC is to minimize legal risks and liabilities, as well as tax liabilities, for the owners and the business. The owners understand a business organizational structure can achieve this goal and can define their managerial roles and responsibilities clearly to satisfy their interests and maximize their areas of expertise.

• Connor, Ali, Madison, and Sam agree that weighing and balancing advantages and disadvantages for the company and its owners is the heart of the process of choosing a business structure. The owners have met privately to discuss their decision. They are now ready to meet with TLG for further analysis, negotiation, and a decision regarding the Green Clean business structure.

Instructions: To assist in this process, Winnie and Ralph asked you to assess several business structures and their characteristics, advantages and disadvantages for Green Clean. Those structures are:

1. General Partnership
2. Limited Partnership
3. Limited Liability Partnership
4. General Corporation
5. Limited Liability Company

Evaluate and synthesize this information, and do the following 2 things.

1. Create a comparison matrix that shows the 5 types of business structures and compares and contrasts each type of business structure.

• You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.
• The chart should include several areas for comparison, i.e., procedure for formation, cost of formation, etc. The chart should include various types of liability for comparison.
• The chart should be an in-depth and comprehensive comparison.
• Ensure the pros and cons of each organizational structure are easily and clearly compared on the chart.

2. Write a memo to GC owners:

• A. recommending a business structure for GC that best minimizes tax and personal liability for the new business and its owners

• B. explaining and justifying your recommendation, specifically and in det