What personal liability will the owners have for the obligations of the business.

BUSI 301 – Business Law | BUSI 301 – Business Law | Liberty University

Peter and Andrew should form a limited-liability company (LLC). The LLC protects the business owners from any personal liability. If the company fails, creditors can’t pursue the owners personally for any amount beyond the initial investment. You can also set ownership percentages on the basis of both labor and capital contributions. This flexibility allows you to be flexible. Each partner can assign the ownership percentage, or they may agree amongst themselves. Paul could also be an owner if he so chooses.

Also, profits and losses may be divided according to agreed criteria like ownership percentage or labor contribution. Since one of Peter’s and Andrew’s goals includes making the lodge available to local church groups they should consider how Paul’s lack of affinity towards churches will affect his role within the organization but it could still work based on how responsibilities are divided between partners and how profits are allocated fairly given individual interests at play here which must ironed out legally before commencing operations properly adhere guidelines set regulations place protect interests everyone involved this transaction promote trust credible reputation name establishment? The founders’ vision and direction are final.

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