Business Organization Summary

The best form of business for Jack Smith and Carl Jones is a limited partnership. It is one of the most common forms of interaction for individuals having more than one busies owner. In this case, these will allows both Jack Smith and Carl Jones to have responsibility for business operations .they will also have unlimited liability on issues concerning the business debt (Needle, & Burns, 2010). The form of business will also allow them to share obligations and benefits of the company. In doing so, it implies that they may also be held responsible for business debts. However, the best form of business is a limited partnership (Needle, & Burns, 2010). In this case, this will allow at least one of them to be a limited partner, whereas the other is a general partner. In this case, the general partner will be involved in making a business decision and will be liable for all business dealings. Nonetheless, the limited partners will have little or no control over business operations, which exempts them from business debts.

Another form of business that Jack Smith and Carl Jones can take is a limited liability company. Although the company is seen as a separate legal entity, it is sometimes expensive to start. The owners of the company are not liable for any debts or legal obligations of the company (Needle, & Burns, 2010). The company can collect and grant loans on its own. However, Jack Smith and Carl Jones should form a limited partnership because it is cheap to start and can quickly help them grow and manage their net revenues. The form of business is straightforward to work since it only requires a limited number of workers to run.

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