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Posted: February 24th, 2022
John is the sole proprietor of a business that designs web pages
John is the sole proprietor of a business that designs web pages. He leases an workplace and buys pc tools. He has an thought or a new software program product, nonetheless, on which he works at any time when he has time and which he hopes might be extra worthwhile than designing Web pages. After six months, Mary and Paul come to work in the business to Help develop John’s thought. John continues to pay the hire and different bills, together with salaries for Mary and Paul. John doesn’t count on to make a revenue at the least till the software program is developed, which could possibly be months, and there could also be little or no revenue if the product is not marketed efficiently. John believes that if the product is profitable, nonetheless, the firm will be capable to comply with up with different merchandise. John want to retain total management of the business however wants to seek out a strategy to tie the salaries of Mary and Paul to the success of the business, and wishes to lift capital to implement his business plan. He additionally desires to restrict his private legal responsibility if the business fails.
Submit one essential consideration in selecting a type of business group for this agency that will greatest permit it to satisfy John’s targets. What are the benefits and drawbacks of this feature? Recommend a written doc that John ought to develop to scale back future legal responsibility and issues of the new business. Present sound reasoning on your stance and again it up with references, if potential. Your logic needs to be factual, not emotional.
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