professional memo to your clients Javier and Elena

Memo to Javier and Elena Student’s Name Institutional Affiliation To: Javier and Elena From: Business Consultant Date: 9/16/2024 Subject: Legal and Ethical Analysis for Javier’s Business Dear Javier and Elena, I am excited to assist in establishing your new business venture “Javier’s Very Hot Sauce”. My duty will be to guide you through the legal and ethical connotations associated with the formation of a new business. This advice is based principally on the information that you provided. For ease of understanding, some of the prospects that will be addressed herein include business entity type, product liability, agency relationships, and property issues. The analysis will further explore prospects like estate planning and personal property like vehicles to offer a holistic understanding of the prospect. This analysis should be vital in assessing all the vital components of your start-up business thereby opening an avenue for proper legal and ethical compliance upon its onset. * Business Entity Options Multiple business entities from which to choose are available and can be explored based on their advantages and disadvantages. Importantly, understanding the business entity to consider is a valuable move as it prepares the business owner to understand the legal, financial, and other obligations that come with different business entities (Cavico & Mujtaba, 2020). Primary among the business entities is sole proprietorship. In a sole proprietorship, one individual owns the whole business entity. A sole proprietorship is preferred because it is simple and requires minimal formalities to execute. However, a sole proprietorship is also disadvantageous as it does not offer any personal liability protection. The second business entity is a partnership that involves a business ownership shared between two or more people. Partnerships are also simple to form with limited formalities involved. However, each partner is personally responsible for the debts and legal liabilities of the business entity. The other entities to consider are a limited liability company (LLC) and a corporation. An LLC is a structure that combines the flexibility of a partnership with an aspect of liability protection. In an LLC, hence, members are protected from personal liability for business debts and claims. Finally, owners can consider corporations, which are legal entities with identifiable rights and responsibilities (Cavico & Mujtaba, 2020). While corporations are complex to form, relative to other entity forms, they offer more protection to individuals. Given the nature of the present case, an LLC will be a suitable entity. That is because it will allow members to protect their assets from the possible liabilities arising from the business while they are still allowed to manage the business. * Issues of Product Liability Product liability is a critical legal concern in forming a business of this nature. That is, it is notable that hot sauce can come with challenges like causin...