Make additional capital contributions to business

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Reference no: EM131690139

The three managing owners want to make sure that all the passive owners are obligated to make additional capital contributions to the business as capital is needed. Therefore, the three managing owners want to make sure that the passive owners remain in the business for the entire 10-year term of the business, even if the passive owners want to leave the business. Which business form is best for achieving that objective? What attribute of that form makes it the best form for achieving that objective? And one of the owners suggests the corporation form be used rather than an LLC because the corporation has a life that is independent of the lives of its owners. Is that a reason to choose the corporation over the LLC?

Reference no: EM131690139

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