Determine the Legal Structure of Your Business: Gather and Analyze Information

You go to your office to begin the task at hand—the preparation of a narrated PowerPoint presentation to potential investors that will address all of the issues involved in making this decision. For critical background information, see Creating Sunburst: Legal and Organizational Considerations. You will need this information to make the best legal and organizational decisions for your business.

Since one of the investors will not be able to attend a presentation in person, you need to prepare and record a narrated PowerPoint, so she can listen at her convenience. In order to complete this task, you realize that you must do some research to address the legal and strategic implications if your business is to get off the ground.

  • What types of business organizations are available to entrepreneurs?
  • What are the advantages and disadvantages of each alternative?
  • What are the two best choices and why?
  • How would you explain your choices to your investors?

Be sure to discuss the following information in your plan (refer to Legal Forms of Business before you begin writing):

  • What are the different legal forms of business that you might consider? You remember that there are at least six factors that will influence your choice:
    • creation and maintenance
    • continuity
    • ownership and control
    • personal liability
    • compensation and division of profits
    • taxation
  • What is your proposed choice for the legal form of business? Include your reasoning based on the preceding six factors and any other relevant factors.

When your research is complete, continue to the next step, in which you will create the Powerpoint presentation for your investors.

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