Apparently, Sunny can provide $280,000, Sam $175,000, and Jacqui the remaining balance. In our conversation, Jacqui identified a number of key questions and concerns, such as:

 

• Wanting to minimise her overall tax liabilities;
• Wanting to ensure the choice of business structure would help in raising capital;
• Concerns that the wrong choice of business structure may not attract and retain the right employees;
• Wanting to know how she could be protected from any poor management decisions of employees/ partners/ directors; and
• Wanting to know how she could retain control over the day-to-day decisions of the business.

Please prepare a memorandum of advice for the client. Advise Jacqui of the potential ways to structure her business, including the strengths and weaknesses of each option for her specific circumstances. Your advice should include a brief discussion of the strengths and weaknesses of each potential option, noting the specific needs and concerns for the client. You must consider Joseph’s assets and liabilities when giving advice. Remember to include specific recommendations on what Jacqui should do – as she is paying us for advice!