Legal Environment of Business

Prepare a paper setting out the following. Please use complete sentences to answer the questions.
Paper 1—Entity formation and contracts (20 points)
Answer the following questions in the following order:
1. What is the name of your company? Feel free to be creative.
2. What type of company are you starting and in what industry is your company going to operate? Again, enjoy this opportunity to get

creative and focus on something you enjoy.
3. What will you offer (good, services, both) and who is your target market?
4. Where are you going to set up/register your company (city and state) and why?
5. Based on where you set up/register the company and where you will do business, in which states could your company be sued? (Remember,

for personal jurisdiction purposes, a company is considered a “citizen” of the state where it is registered, where the principal office is

located, and where it does business.)
6. Will you have any physical locations (any “brick and mortar” stores, distribution/storage facilities, warehouses, etc.) or be a

strictly virtual/online business?
7. What business form will your company take (i.e. Sole Proprietorship, Partnership, LP, LLP, LLC, Corporation)? You will need to look

ahead to Chapter 19: The Entrepreneur’s Options, which we will cover at the end of the semester; and glance at Chapter 20: Corporations, which

we will not cover in this class.
8. How does your chosen form of business protect you or others from exposure to personal liability? You will need to look ahead to Chapter

19: The Entrepreneur’s Options, which we will cover at the end of the semester; and glance at Chapter 20: Corporations, which we will not cover

in this class.
9. What are the tax implications of your chosen form of business? You will need to look ahead to Chapter 19: The Entrepreneur’s Options,

which we will cover at the end of the semester; and glance at Chapter 20: Corporations, which we will not cover in this class.
10. Identify five (5) different contracts into which your business/company will need to enter in order to be and running, including the

purpose for each contract, i.e. to secure a good/service (such as funding, a building in which to operate, etc.), protect against a liability,

mitigate some risks, etc.

WE ACCEPT