Recommendations for a Business Organizations: Limited Liability Company (LLC)
Jack Smith and Carl Jones are considering opening a lawn mower sale and service center. Jack and Carl come to you for a recommendation as to which business organization should be used to conduct their business.
Provide a brief summary of which form of business organization you believe to be the best form of organization to conduct their business and the reasons for your recommendation. Be sure to include an analysis of the advantages and disadvantages of other forms that may be available as they relate to the anticipated operations by Jack and Carl and the reason for your recommendation despite the disadvantages of your recommended form of business organization.
Your analysis should be no more than one typewritten page, in Times New Roman 12-point font, double spaced lines with one-inch margins on top, bottom and sides. Do not repeat the facts and base your response on the laws of the State of New York.
BUSINESS ORGANIZATIONS
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Recommendations for a Business Organizations
Jack and Carl should form a limited liability company (LLC) to conduct their lawn mower sale and service center business since it is a hybrid form that combines the advantages of corporations and partnerships. It also offers limited liability to its members; hence, they will not be individually liable for debts and other obligations. This minimizes the risk of personal assets loss in case of lawsuits or bankruptcy. An LLC will also offer more flexibility and simplicity than a corporation. It will not have to follow the formalities and regulations that apply to corporations, such as holding annual meetings, keeping minutes, and electing directors and