Problem
The organization best suited for this business activity would be a limited liability corporation, which is treated much like partnerships. It is a private corporation, so they can bring in a private investor to put up the remaining $700,000, on top of what they have equally agreed to invest. There will be equal management between the three of them, but while they are not present, a manager will be designated in the articles of organization. The members will be liable only for their investment. There is generally no personal liability of the members for obligations of the business.