Part 1:
Scenario 1
Charlie and Lucy are partners in a book shipping company. Charlie dies. Charlie's widow calls Lucy and says, "As Charlie's heir, I am entitled to take Charlie's place as your partner." Lucy states, "No, you are not." The widow states, "ok, then as Charlie's heir, I am entitled to all of the books in the warehouse." Lucy states, "No, you are not. All you are entitled to is the value of Charlie's interest in the partnership property.
Who is correct, Lucy or the widow? Support your answer with material from the readings and/or the applicable law.
Scenario 2
Tim Taylor operates a home improvement business performing various fix-it-up projects, including some car repairs. Tim is well known for his fun personality and quality work, so he has plenty of loyal customers to keep him busy, along with one full time employee, Al. Tim occasionally rents out some of his tools and equipment to friends and clients.
About a year ago, Tim started purchasing foreclosed homes, renovates them and then rents or sells the homes. Some of the homes are financed through various banks.
Tim and his wife, Jill, own a home, in which they have a reasonable amount of equity. Jill manages the books and other accounting responsibilities for the business.
Which type of business organization is best for Tim? Explain the advantages and disadvantages of your selection and why your answer is best based upon the applicable law.
Part 2-
Create a new business that you would like to operate. Would you select an LLC, an LLP, or a corporation to form your company? Provide a detailed explanation as to why that entity would be appropriate for you. Support your choice with the applicable law and/or text materials. Search for information related to doing business in FLORIDA and provide the requirements for the option you selected, as applicable.