Law20059: Business Structure Recommendation Report for Clients

This report, prepared for Ms. Rebbecca, the supervising partner, analyzes the suitability of partnership and company business structures for the client, Ted, Greta, and Mariana, who plan to import Russian food. It examines costs, administrative and regulatory burdens, potential liabilities to third parties, and fiduciary duties associated with each structure. The report highlights the ease of forming a partnership but notes its unlimited liability. Conversely, it details the stricter requirements and higher costs of establishing a company, emphasizing the limited liability it offers. Fiduciary duties under both partnership and company structures are explored, including the duty of care, loyalty, and fair dealing. The report concludes with an advisory section, recommending a proprietary company as the most suitable structure for the clients, considering their family relationship, the nature of the business, and the need to protect personal assets. This recommendation is based on the formal structure and limited liability benefits a company offers, despite the higher initial costs, ensuring the clients' personal assets are protected while conducting business.