BUSN623_Midterm_Part_2.docx - 1 Prototype Robotic Device\"Phoebe American Public University BUSN623 Legal and Ethical Issues in Management Dr Samantha

BUSN623_Midterm_Part_2.docx - 1 Prototype Robotic...

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1 Prototype Robotic Device " Phoebe " American Public University BUSN623: Legal and Ethical Issues in Management Dr. Samantha Ward Due Date: August 29, 2020 Prototype Robotic Device " Phoebe "
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2 Introduction It is very criterial and challenging for businesses to select the appropriate type of entity to manage their business. The firm has to review and meet several criteria based on the legal requirements of the state and the country. The main goal of businesses is to generate revenue and increase profit. However, it is not possible to accurately anticipate profit or revenue due to uncertainties. Thus, it is very important to have tools available to make business more sustainable as well as to protect the proprietary data or options available in case of disputes. Gemma and James' case study focuses on how to protect their new invention, Prototype Robotic Device, Phoebe, types of Intellectuals property (IP) that are relevant to protect their invention, and alternative dispute resolutions that can be applied to them. Type of Business Organization Gemma and James as a dual owner of Phoebe should consider establishing a Limited Liability Company (LLC) which can be formed by one or more individuals. Both Gemma and James in the company will have the authority to decide whom to join the team without any limitation. Moreover, LLC offers limited liability protection, easier to set up, has less reporting requirements, and offers flexibility between being taxed as a partnership or corporation (Sweeney, D.(n.d.)). Both Gemma and James as a member will have the chance to gain more profit/losses because they can report their business on their personal tax. Legal Requirements It is very crucial for a business to have the required documentation prior to starting their business. Some documentation is required by the state or country law; however, some are needed to prevent the firms from complications and or lawsuits. These documentations are necessary prior to the startup of a business. Gemma and James must also develop the required paperwork
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3 based on state law in order to form their LLC. Depending on the law in the state, as a general rule, Gemma and James will need a certificate of the organization (an article of the organization) to prove that their LLC exists within the state. The general minimum requirements for the article include (1) LLC's name and address;(2) Registered Agent ("a person who agrees to receive lawsuits, subpoenas and other official documents on behalf of the LLC and to pass them along to the appropriate person at the LLC"); (3) Operating Agreement ("a roadmap that describes how the L.L.C. will be run" such as management structure, members responsibilities; procedure for allocating profits, losses or disputes); and (4) tax forms (Haskins. 2020).
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