Nate Chooses a Business Entity

Abstract

This case follows Nate Jamison as he determines which business entity to form for his growing City Moving Company (City Moving) in Washington, DC. From the start, Jamison operated City Moving as a sole proprietorship while he bootstrapped the business. Eventually he was able to get his own truck and hire two steady employees, and the three hope to formalize a business partnership to expand City Moving so that all three men can lead their own moving teams. To document the new ownership agreement, the partners know they need to properly register City Moving as a business entity. But which one would best fit City Moving's needs?

Excerpt

UVA-F-1795

Jun. 12, 2019

Nate Chooses a Business Entity

Introduction

Nate Jamison leaned his burly shoulder into the tall wooden wine cabinet, edging it gingerly down the carpeted stairwell below. Sweat clouded his eyes as he hunched to absorb the weight of the piece. “We have room down there? Talk to me, D.”

“D,” or Darius Colton, glanced over his shoulder as he guided the lead end of the structure lower. “Sure thing, boss. We're good. Keep easing it down to me.” Just then Terrance Taylor, the third member of their moving crew, appeared through the front door, fresh from putting a box of kitchen items in the truck. Instinctively, Taylor grabbed a corner of the cabinet, positioning himself to share the burden.

. . .

Keywords: Resilience Education, C corporations, S corporations, nonprofit, partnership, taxation, limited liability, flexibility, entrepreneurship, foundations in business