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Business Organizations

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Nick and Mitch are partners in a successful lawn care business and are considering the possibilities of
expansion. Mitch has been attending college to study accounting. Mitch would like to cut back on his landscaping responsibilities when he graduates to take on a full-time job in accounting; however, he
could manage the financial affairs of the partnership.
Nick suggests that they hire Tracy to join the partnership because he is younger and could pick up the work Mitch was doing. Nick and Mitch currently operate as a general partnership. When the partners
talk with Tracy, he suggests that he would like to become a full partner.

•How would you advise Nick and Mitch when they come to you for advice about the best type of
business organization for their landscaping business? Explain your reasoning.
Consider at least one limited liability option in your response, such as the LLC or LLP.


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