I have accepted the challenge of creating the following business entity from the provided list of four hypothetical business entities.
Five friends have gotten together to form a commercial construction business. Two of the friends have sizeable assets, but little construction experience. These two also have some experience in running companies. The other friends have a small amount of capital to invest. Their major contribution to the group is that all three formerly worked for very successful homebuilders, and one individual headed the local division of a national construction company for the past two years. Even with their combined savings, the group realizes that they will need to either obtain bank financing or outside investors. Bank financing will require that the five friends put up their personal assets as collateral. Outside investors will not demand personal collateral, but will demand control. The five friends believe that the company will be a success. Yet, even without having to give a bank personal collateral, they are concerned that if the business fails, they could lose everything they have accumulated.
1) Idea/vision for the business.
I will name this business, ALR Commercial Development, LLC. I envision the business as one, which operates with honesty, integrity, and provides leadership within the communities in which it operates. The business would also provide superior customer service and strive to complete all projects on a timely basis. ALR would focus on developing small and large-scale shopping malls. The target area for projects would first be throughout the New York area. If successful, we would then take on projects in Long Island and New Jersey.
2) Identify legal and regulatory issues to be considered in crea ...