What are the pros and cons of different corporate entities

Assignment Help Operation Management

Reference no: EM131630624

You are a lawyer representing small business owners in Washington state. A new client, Sally, has contacted you for help regarding her new business plan, Stars Mobile. Stars Mobile is a food truck company that provides catering at outdoor venues. The cooks and servers would wear costumes and impersonate famous movie stars such as Elvis Presley and Marilyn Monroe while performing catering services. Sally estimates that her new company will hire 40-60 part-time employees and have annual revenues of $500,000. It will operate in Seattle only.

Sally is currently a top salesperson at a catering company called Starz Service that serves customers throughout the greater Puget Sound Area. Starz Service provides their catering services at indoor venues only. Starz Service’s best customers requested catering services that incorporated some entertainment, which is where Sally got the idea for Star Trucks. Sally is confident that these customers would hire Starz Trucks for their outdoor catering needs. Sally signed a non-compete agreement with Starz Service which restricted Sally’s ability to directly solicit and/or provide catering services to any Starz Service customer during her employment and for 1 year after her employment with Star Service ended.

Sally is seeking advice on the following questions.

1. What are the pros and cons of the different corporate entities Sally can use to incorporate her business? What corporate entity do you recommend, and why?

2. What factors should Sally consider when evaluating the terms of her non-compete agreement with Starz Service? In your opinion, how likely would it be that Starz Service’s non-compete agreement would be enforceable against Sally? Why?

3. Sally is nervous about starting her food truck catering company because of the potential liability. What types of potential liabilities or claims can you advise Sally to take precaution from with customers and employees?

4. Do you see any intellectual property issues that you can advise Sally on? If so, please explain.

5. Are there any other issues you would raise with Sally?

Reference no: EM131630624

Questions Cloud

What are some advantages to having driverless cars : What are some advantages to having driverless cars? Can you think of any disadvantages? How would a driverless car change your life?

Examine changes and developments : Examine changes and developments that are currently taking place in the field of HR management. Predict two changes and developments.

Explain qualities of improving public safety : explain how it represents qualities of improving public safety, correcting a free market failure, or correcting inefficiency

What religion does the employee practice : What religion does the employee practice? What are some beliefs and practices of this religion? Did the new manager do the right thing? Why or Why not?

What are the pros and cons of different corporate entities : What are the pros and cons of the different corporate entities Sally can use to incorporate her business? What corporate entity do you recommend, and why?

Model of portable music players : Avian Electronics, Inc. manufactures a model of portable music players that can play music downloaded from the Internet. It is considering adding a more.

What is definition of power : If politics truly defines a while gets what, when, where and how, then those that succeed at this game must have some advantage in doing so.

What kinds of interactivity does the game offer : What kinds of interactivity does the game offer? What is significant about the game's form of interactivity? What are the rules of the game?

Why do you think that is : Why do you think that is? How would you define an ethical business culture?

User Account

All Pages