Date: 2/25/2014
To: Nancy & Sue
From:
Subject: Business Structure Recommendation
I had the opportunity to review your plan in detail for your co”ee roasting business you would like to
open. Based on what you are looking to do I would recommend a limited partnership business structure.
In order for this business venture to be successful you will need to identify which family members and
friends you are going to get to invest in the company. These individuals will be considered limited
partners and the both of you will be considered the general partners. The di”erence between general
partners and limited partners are as follow:
General Partners
oInvest Capital
oManage the business
oAre personally liable for partnership debts
Limited Partners
oInvest capital
oDo not participate in partnership management
oAre not personally liable for partnership debts
It is very important that your investors understand the di”erence between the two. Most importantly
they need to understand that their capital investment could be loss if the business does not do well and
storefront location is successful and the initial limited partnership is working well; we can revisit
expansion in the future.
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MEMORANDUM