Business Law Memo

M E M O R A N D U M TOClient FROM DATENovember 16, 2011 RESuggestive Business Entity for resume of Cancer Question Presented What business sector entity would be best suited in order to create the opening move for the leaf nodes scientific recover of cancer, while abide bying his main interests in mind to come out supporter in hunting expeditionning the business portion of the enterprise, while limiting his in the flesh(predicate) liability and providing investors with the most profit possible while limiting the range of a function of the amount of how many people that will eventually be knotted?Brief Answer A C Corporation will liable(predicate) suit the needs of the clients interest in creating his business enterprise of creating the cure for cancer. Facts Based on the information provided by the client, he wants to manage the scientific formula of the business and hire business professionals to run the enterprise and procession additional funds. In addition, he wa nts to limit his liability in the enterprise and wants to limit the field of how many investors would be involved. DiscussionBased on my interpretation of the clients interest, he wants to hire another business professional to handgrip the business side. Because of this, C Corporation would be most honorable. If the client brought on his main investors as throttle partners and then they ended up making significant management decisions while he developed the science, they would be treat as general partners for liability reasons. Also, the client did not say barely that he did not want investors to be liable, solo limit the scope of how many people would be involved, he did say that he cherished to limit his personal liability.Therefore, C Corporation would be most beneficial because the client and his investors would have limited liability. In the alternative, an LLC could be a happening if the client wanted to take part in running the business aspect of the enterprise, then this would be the best. The client and the business professional that is employ would be partners running the business aspects of the enterprise. The client would overly be trustworthy for science aspect of the enterprise.The investor he brought on would become limited partners who would only contribute assets and would not participate in the management of the business. Therefore this would lionise their personal assets protected from the business just in case the go with fails. Although this would protect the investors it would leave the client completely liable for any unconventional actions the investors make can. If the client did not want the investors to be held liable at all then in fact, a Limited Partnership would be best because the client would become the general partner.Therefore, he would be the iodin to run the business aspect of the enterprise. On top of running the enterprise he would also be in charge of the science aspect of the enterprise also. The investo rs he has now and in the future would become limited partners who would only contribute assets and would not participate in the management of the business. This would keep their personal assets protected from the business just in case the beau monde fails. Although this would protect the investors it would leave the client completely liable for the partnership debt.It would also leave the client responsible for the business aspect of the company which he previously stated he was not interested in handling. We could get around this by suggesting they develop a LLP as the general partner. (Loafman, lecture) remainder Although, Limited Liability Company and Limited Partnership have positivist aspects, C Corporation would still be most beneficial to our client because he just wants to be the scientist and does not want to be the unmatched to manage the business. He wants to hire some business professional to run the enterprise and limit his liability.