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Situations on Some Business Association and Possible Solutions

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Instructions: Please complete this homework assignment once you have completed " Module 5-Readings and Lectures"
For the answers, no IRAC needed. Just answer the questions with a couple sentences.
https://youtu(dot)be/Ij-nXk9E_tM

Question 1
Jeff comes to consult with you about an idea he has.  He tells you that he does not have a lot of cash to pay but if you help him, he will compensate you with equity in the company.  He talks about a crazy website were individuals can buy and sell books online, something called “Amazon”. Knowing that the book industry is a multi-billion-dollar industry, you agree. Jeff tells you that he needs to form a business entity for his business idea. He wants a company that he can grow while still keeping a close eye on his investors. Jeff has big dreams that that company will one day be a multi-billion-dollar company that sells more than books. Jeff wants the most liability protection possible while still avoiding as much taxes as possible. What would your answer be if Jeff told you that he needed the most amount of investments possible and that taxes did not matter to him? (No IRAC needed. Short Answer Only)
Question 2
Mark comes to your office to talk to you about an idea he has.  He tells you that he does not have cash to pay you but if you help him, he will compensate you with equity in the company. He talks about a crazy website were individuals can talk to each other online and socialize, something called “Facebook”.  Knowing that the technology industry is booming, you agree.  Mark asks you that he needs to form a business entity for his business idea. He wants a company that can grow as big as it needs to, Mark has big dreams that the company will one day be a multi-billion-dollar company.  Mark also wants to be able to get as much funding and investors as possible.  He wants the most liability protection possible, mostly since he predicts millions of users. Mark is not that concerned about taxes because he believes companies should give as much profits back to the community. 
Which business entity would you recommend for Mark? And why? Be as specific as possible, don’t forget to mention the tax treatment. (No IRAC needed. Short Answer Only) Question 3
Jeff comes to consult with you about an idea he has.  He tells you that he does not have a lot of cash to pay but if you help him, he will compensate you with equity in the company.  He talks about a crazy website were individuals can buy and sell books online, something called “Amazon”. Knowing that the book industry is a multi-billion-dollar industry, you agree. Jeff tells you that he needs to form a business entity for his business idea. He wants a company that he can grow while still keeping a close eye on his investors. Jeff has big dreams that that company will one day be a multi-billion-dollar company that sells more than books. Jeff wants the most liability protection possible while still avoiding as much taxes as possible. What kind of relationship have you started with Jeff?  What type of authority(ies) has Jeff given to you, please explain? (No IRAC needed)
Question 4
Jeff comes to consult with you about an idea he has.  He tells you that he does not have a lot of cash to pay but if you help him, he will compensate you with equity in the company.  He talks about a crazy website were individuals can buy and sell books online, something called “Amazon”. Knowing that the book industry is a multi-billion-dollar industry, you agree. Jeff tells you that he needs to form a business entity for his business idea. He wants a company that he can grow while still keeping a close eye on his investors. Jeff has big dreams that that company will one day be a multi-billion-dollar company that sells more than books. Jeff wants the most liability protection possible while still avoiding as much taxes as possible. Please tell me which business entities would you recommend to Jeff, and why? If more than one, please explain the difference between them.  (No IRAC needed)

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Module 5 Answers
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Module 5 Answers
Question 1
The most probable answer for Jeff is to consider a multi-member LLC as it would allow for two or more members who can control the share of the company. The arrangement will allow for an arrangement where Jeff can accommodate additional investors while keeping an eye on them. The multi-member LLC will allow some form of protection against general liability while allowing for self-employment tax.
Question 2
The most viable business entity for Mark is a limited liability company as it allows for the growth of the company without restrictions. Additionally, the business entity will allow for additional investors and liability protection. The formation of a limited liability company will allow for taxes to be tre...
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