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REPORT To: Winnie James, Ralph Anders From: Jarius Bellamy Re : Clean Business Structure Date: October 6, 2023 (1). Executive Summary Connor, Denise, Larisa, and Sam are looking for the best business organizational form. In their plan, they are seeking to get an organizational form that clarifies the responsibility of each partner in the partnership. A clean managerial team wants to adopt an organizational structure that minimizes legal risks and liabilities and tax liabilities. The managerial team should be clear to establish a clear foundation especially in large joint ventures or in partnerships where there are differences in cultures, communications, and expectations among the owners of the business. The level of Clean requires all partners to be given an equal chance at the negotiation table so that there is transparency and that each member states their goals. The right business structure will ensure that Clean has the best tax options and that the personal assets of each partner are protected in case of a lawsuit or other liability. Also choosing the right business structure ensures that Clean Viral owners can secure funding in case they wish to raise funds for internal operations or expansion. Also, the business structure should favor Clean Viral in terms of paperwork and registration. (Andy, 2012, Chapter 20).

(II). Issues Presented  What is the best business structure for Clean to minimize tax and personal liability for the new business and its owners?  What are the reasons and justification for the business structure chosen? (III). Discussion: Statement of facts The best business structure for Clean that helps minimize tax and personal liability with the nature of Clean is the Limited Liability Company (LLC). The Limited Liability Company (LLC), is the best option since its adaptability transfers all liabilities to the company and not the owners. GC benefits from this arrangement in case of lawsuits or bankruptcy. Additionally, the owners are only liable for an equivalent number of personal interests. The owners are protected since they have varying levels of interest and ownership in the company. This structure also gives Clean tax benefits since such structures give options for customizing the tax structure. Thus, the business utilizes the best and most favorable tax strategy for their situations. There is no double taxation in LLCs since the profits from the business are only taxed as part of the owners' income. This implies the business is not subject to the alternative minimum tax. The owners of the Clean benefit further since they are exempted from paying higher taxes applicable to corporations and will retain a bigger chunk of their profits. Another advantage to the owners of the Clean is how LLC allows for greater ownership and management freedom. The owners determine the profit and loss sharing procedures and assign responsibility to each partner. This is beneficial to owners of Clean since they can personalize their ownership structure and custom-make it to fit their varying interests and requirements.

Also, the LLC business structure allows profits and losses to be passed through to the owners. This helps the owners to plan their taxes and also know their share in the company’s income. Clean owners will benefit from this since it helps each partner to benefit from individual tax rates that apply to them. Sincerely, Jarius Bellamy References

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