Business Organizations (posted by Jessica)

Larry Ran Madly Down The Turnpike Calling For Doughnuts.

This phrase is a great way to remember the key topics for use when analyzing the various Business Organization types. The first letter of each word in the phrase corresponds to the first letter of one of the topics.

L = Liability
R = Raising Capital
M = Management
D = Duration
T = Transferability
T = Taxation
C = Complexity
F = Foreign States
D = Documents

Focus on memorizing each business type’s response to these 9 topics. The phrase about “Larry” is a quick way to check that you have covered all 9 topics when answering exam questions. If this phrase does not work for you, design a phrase of your own or a mental picture to remember the topics.

Individuals beginning a business are especially concerned with protecting themselves to avoid liability and excessive taxes. Or the individuals may be focused on finding the simplest management arrangement that will allow them to get right down to the business of making a profit. The attorney’s job is to make the individuals aware of how ALL of the above topics affect the decision of which Business Organization to choose. You as a paralegal will be involved in the research before creation of the business, and in preparing the documents to create the business entity.

On the note of documents, it might be a good idea to draw a chart to help you remember which documents are needed for each Business Organization. Without the proper paperwork a business may not be legally recognized and will face many problems in the future.

God bless the rest of your Third Quarter studies.