The Case Of The Smithson Family Essay

1295 Words May 22nd, 2016 6 Pages
The memo that was constructed for the Smithson family will provide an in-depth summary regarding the direction the family should go into starting their business. Within this memo a detailed analysis will provide a layout to expand their company globally and continue to grow at a steadfast pace. The seriousness of the widget invention that was constructed is revolutionary to say the least. The primary concern that Gloria Smithson has expressed is in regards to the personal liabilities for the members of her family. Therefore with that being said, personal liabilities will be part of the main vision of this memo as well. The most efficient way to get to this resolution is by selecting the best business formation for the invention, identify them, identify the pros and cons and lastly, select the formation that best suits the Smithson’s family.

Business Formations Businesses now have a vast array of options to select a solid foundation when deciding to start their own business and taking that huge first step. These are the six primary business formations:
· Corporation
· Sole proprietorship
· Limited partnership
· General partnership
· Limited liability company (LLC)
· Limited liability partnership (LLP)
According to (Cheeseman, Henry R. 2015, p.459) Regarding Gloria Smithson’s concern in reference to personal liabilities for the members of her family, the three formations listed below are what we believe will best suit the Smithson’s situation:
· Limited liability…

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