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You, your brother, your sister, and your best friend’s Aunt were visiting and came up with the idea that together you could go into business offering mortgages to the public. Your best friends Aunt, Auntie Yoda is already working in the business and has lots of contacts with people and banks that have money to lend. She has wanted to start a business for some time because she knows how to be successful in this business and there is definitely money to be made. Your sister has experience with the local business community, your brother just completed his MBA in finance from Harvard, and you have been working in a bank while attending CC and you are about to graduate with an Associate Degree in Business! You are all convinced this is a workable business idea. You have been discussing how you are going to set up the business.
How would you analyze the organizational options available to you? What are the pro’s and con’s as they apply to these facts? What form of business organization would you prefer and why? Support your conclusions and discussion with legal analysis taking into account the legal attributes of each form and the operational aspects of each form.
