Nick and Mitch are partners in a successful lawn care business and are considering the possibilities of expansion. Mitch has been attending college…

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.

Include comments related to any ethical issues that arise. You should locate at least one scholarly source from the SUO Library or one case that has been decided or is currently pending to support your answer.

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