Blaw,, Please help Sam Smith has invented and patented a new solar panel. His pa

Question

Blaw,, Please help Sam Smith has invented and patented a new solar panel. His panels are cheaper to produce and more efficient than most solar panels currently on the market. He would like to manufacture and sell his solar panels to residential contractors for professional installation on commercial and residential buildings. There is a small chance that his solar panels might cause fires, if they are not installed correctly. To limit his liability, he plans to offer training videos of panel installation for all contractors who purchase his panels Manufacturing these panels will require that he acquire several existing businesses that manufacture and package similar products. He has calculated that he will need to raise an additional $10 million in capital to start the business. He would also like to keep his personal taxes and personal liability as low as possible Describe the factors that are relevant when choosing a business entity and describe the various forms of business entities he might choose. State which type of business entity would be the best choice for his solar panel business and explain why

Explanation / Answer

The following are the factors that must be considered in choosing a business:

Types of businesses:

        There are various types business like developing & owning solar projects where there can be team of experts with an experienced solar consultant & contractor to handle the installation, selling 3rd party provided services like selling services of other companies like solar insurance products, solar cleaning, solar financing etc. agricultural units that are powered by solar, recreational units, government organizations, private investment groups etc. all these can be various types of entities.

The business entity that would be most suitable is agricultural units. He can consider his business with agricultural units. As most part of the population would engage themselves in agriculture. He can support them with solar panels which can help them in making their agricultural activities more easily & as he has also invented his own panel, using it for the first time in any other business entity can’t be advisable. If he is successful in his projects, he can try in some other big entity or project.

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