Business Formation Analysis
Katy Ward
Liberty University
BUSI561: Legal Issues in Business (B12)
Dr. Richard West
27 February 2022
Ward 1
Organizing A Business
When starting a new business, there are many things to consider. Choosing what kind of
organization you want to have can start the process of defining a business and what the goal is. In
the case of Shania wanting to start a new coffee business, she has considered organizing her
business as a sole proprietorship, a partnership of some sort, a small corporation, or an LLC. She
has several options available, as well as several people interested in contributing to the starting
and maintaining of her business. Shania must look at all of her choices to decide how she wants
to organize her business in a way that it can flourish and accomplish her dreams and goals.
Knowing that Shania’s husband is willing to be involved in the capital of the business but
not wanting to be involved in the daily operations, either a Limited Partnership (LP) or a Limited
Liability Partnership (LLP) would seem to be the best option for her (SBA, para. 8-10, 2021)
should she choose to work with her husband. Both of these options provide the opportunity for
Shania to have full control over the business, while her husband, the limited partner, would not
be held responsible for anything except for the money he puts into the capital of the business. He
would act mostly as a “silent partner”. Knowing that, the LLP would be the better option of the
