Final Project - Roxane Meton
Part A - One of the exciting aspects of a free market economy is that you have the opportunity to start your own business or to purchase an existing entity. In order to foster business development, our society, primarily through the various state statutes, allows businesses to organize in various formats to achieve the owners' goals of making a profit, limiting liability, reducing liability, limiting, allowing unfettered transferability of interests, restricting or limiting management control, and so forth. There is not one business form that suits every business transaction. However, based on the nature of the business, the business plan, the characteristics and needs of the owners, certain business stuctures work better than others.
Meet with your team and agree upon a particular business of any kind. For example, your team could organize a coffee shop, internet business, a bar, real estate development firm, manufacturing firm, investment firm, consulting firm and so forth. Once your team selects a business, your team should develop a detailed description of the business, its activities, needs, such as capital and so on. Since the members of your team will also be the owners, you should develop a profile of each owner. For example, what is their propensity of risk, what are their liability concerns, what talents to they bring to the business, how much will they invest, what is there desire in terms of management control, do they have concerns over tax issues, and so forth.
Based on the above, your team should prepare a written memorandum that discusses the nature of your business, profiles of the owners, and the basic business structures (please do not use a sole proprietorship) your team considered. Your team should analyze three different business structures and discuss why one form is better than the other two forms your considered. The memo should be directed to the loan committee at Mystery Bank and Trust because you will need capital to start your business and the memo should not exceed eight double-spaced typewritten pages.
Part B - Attached to your memo and NOT included in its page length will be an appendix. The appendix represents your business entity documents. Please go to the business formation link on Blackboard and from there you can obtain the forms that the State of Louisiana requires. In addition, to the required state documents that your team needs to prepare, many business structures need additional documentation, such as by-laws for corporations, operating agreements for LLC's, and partnership agreements for partnerships, limited partnerships agreements for limited partnerships, and so forth. You will need to draft these documents. For the additional documentation, you cannot exceed five pages.
Part C - Next, choose a vendor that your company will contract with for supplies, staffing, services, anything. Prepare a contract between your company and the vendor. The contract cannot exceed 10 double-spaced pages.