| Course | BUS 484 Entrepreneurship |
|---|---|
| Module | Module 7 |
| Paper type | Legal form and launch plan |
| Length | About 1,053 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for BUS 484 Module 7
Two Founders, Two Ladders and No Paperwork Yet: Choosing a Legal Form and Planning the Launch of a Window and Gutter Cleaning Company
Student Name
Business Administration Program, Aspen University
BUS 484: Entrepreneurship
Instructor Name
Month Day, Year
Two Founders, Two Ladders and No Paperwork Yet: Choosing a Legal Form and Planning the Launch of a Window and Gutter Cleaning Company
Carlos Mendez and Tyler Briggs met as roofers and spent the last two summers cleaning windows and gutters on weekends in the Columbus, Ohio, suburbs. Word of mouth has given them more requests than they can handle, and they want to leave their jobs and build a company. So far they have operated with two ladders, a pickup truck, a shared payment app and no formal agreement. Before they buy equipment or hire anyone, they need to decide what legal form the business should take, how they will share ownership and decisions, what insurance they need and how to launch. This paper addresses each question. It is a learning example, not legal or tax advice, and the founders will review their final choices with an attorney and an accountant.
Why Structure Matters for This Business
Cleaning second-story windows and clearing gutters means working on ladders and roofs above customers' property. A fall could injure a worker, a dropped tool could break a window or damage a car, and water from a cleared gutter could flood a basement. If the business is sued, the legal form determines whether the owners' homes and savings are at risk. The form also affects how profits are taxed, how much paperwork is required and how easily the business can add owners later.
Comparing Four Legal Forms
Federal guidance describes the main structures available to small businesses (U.S. Small Business Administration, n.d.) and how each is taxed (Internal Revenue Service, n.d.). The table summarizes the four options the founders considered.
The founders' current arrangement is already a general partnership, because two people running a business together for profit form one by default. That is the riskiest choice for a company whose work involves ladders. A limited liability company protects personal assets in most circumstances, keeps taxation simple and costs little to form. Electing S corporation taxation can reduce self-employment taxes once profits are high enough to justify salaries and payroll costs, so the founders will revisit it with their accountant after the first full year. A C corporation suits companies planning to raise money from investors, which this business does not.
| Form | Personal liability protection | How profits are taxed | Paperwork and cost | Fit for this venture |
|---|---|---|---|---|
| General partnership | None; each partner is liable for business debts | Passed through to partners' personal returns | Minimal; forms automatically when two people do business together | Poor, given the physical risks |
| Limited liability company | Generally protects personal assets | Passed through by default for a multi-member LLC | State filing fee and an operating agreement | Strong for the first years |
| LLC electing S corporation taxation | Same as an LLC | Owners are paid salaries; remaining profit passes through | Payroll, separate return and reasonable salary rules | Worth revisiting when profits grow |
| C corporation | Protects personal assets | Taxed at the company level, with dividends taxed again | Most formal: bylaws, board and separate return | Poor; built for outside investors |
The Founder Agreement
Wasserman (2012), who studied thousands of startups, found that many founding teams split ownership quickly and equally to avoid an awkward conversation, and that tensions over roles, contributions and control later contributed to many of the problems that ended these ventures. His research suggests settling hard questions while relationships are good. Mendez and Briggs will own the LLC 50-50, because each will contribute $6,000 and work full time. Their operating agreement will include four-year vesting with a one-year cliff, so a founder who leaves early does not keep half the company. Mendez will run operations and scheduling; Briggs will handle sales, estimates and the books. Decisions above $2,500 require both founders, and a deadlock will go to a mentor they both trust from the local small business development center. If one founder leaves, the other may buy his share at a price set by a formula in the agreement.
Insurance and Registrations
The company will carry general liability insurance of $1 million per occurrence to cover property damage and injuries to customers, a commercial auto policy for the truck and ladder racks, and tools and equipment coverage. Ohio requires employers to obtain workers' compensation coverage through the state's own fund rather than private insurers, so the founders will register with the Ohio Bureau of Workers' Compensation before hiring their first employee. The LLC will obtain a federal employer identification number, register with the state and open a separate business bank account so business and personal funds are never mixed.
Launching as a Minimum Viable Product
Ries (2011) argued that startups should launch the simplest version of their offering that allows them to learn from real customers, then move through repeated cycles of building, measuring and learning instead of executing a detailed plan built on untested assumptions. Blank (2013) described the same shift as a move from writing business plans to searching for a repeatable business model through experiments with customers. For Mendez and Briggs, the minimum viable product is one crew offering three services, window cleaning, gutter cleaning and screen repair, in four suburbs, with online booking and a simple price list.
They will measure three things at each checkpoint. At 30 days, the target is 60 completed jobs and a cost of less than $40 to acquire each customer through door hangers and neighborhood social media. At 60 days, the target is an average job value of at least $260 and a rating of four and a half stars or better. At 90 days, the decisive test is whether at least 30% of first-time customers have booked a second service, such as a fall gutter cleaning. If they reach all three targets, they will hire a second crew. If repeat bookings fall short, they will test a seasonal maintenance plan before adding staff.
Conclusion
The founders should replace their accidental general partnership with a limited liability company now, revisit an S corporation election when profits grow and avoid a C corporation unless they seek investors. A written operating agreement with vesting, clear roles and a buyout formula addresses the disputes most likely to end their partnership. Insurance and state workers' compensation protect against the physical risks of the work. A lean launch with three measured checkpoints lets them grow on evidence rather than optimism.
References
Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91(5), 63-72.
Internal Revenue Service. (n.d.). Business structures. https://www.irs.gov/businesses/small-businesses-self-employed/business-structures
Ries, E. (2011). The lean startup: How today's entrepreneurs use continuous innovation to create radically successful businesses. Crown Business.
U.S. Small Business Administration. (n.d.). Choose a business structure. https://www.sba.gov/business-guide/launch-your-business/choose-business-structure
Wasserman, N. (2012). The founder's dilemmas: Anticipating and avoiding the pitfalls that can sink a startup. Princeton University Press.
Reading the BUS 484 Module 7 assignment instructions
Aspen describes BUS 484 as following ventures from their beginnings to launch and growth, and a module on legal forms and launch usually asks students to choose a structure and plan the opening. Use the Module 7 wording your instructor provides; this example treats it as a two-part paper on structure and launch for one company. Explain the venture and the risks that make structure matter. Compare the main legal forms on liability, taxes, cost and flexibility, citing reliable sources such as government guidance. Recommend one form and explain why the others fit less well. When there are several founders, address how ownership and decisions will be shared and what happens if someone leaves. Cover insurance and any required registrations. Then plan the launch with specific steps, measures and dates.
Inside the BUS 484 Module 7 example
The opening introduces Carlos Mendez and Tyler Briggs, who have been cleaning windows on weekends and now want a full company. A section on risk explains why work on ladders and roofs makes personal liability a real concern. A four-row table rates four structures, from the default partnership through an LLC with and without an S election to a C corporation, for liability protection, taxation, paperwork and fit. The paper recommends an LLC now and revisits an S corporation election once profits grow. Wasserman's research on founder conflict shapes an agreement covering a 50-50 split with four-year vesting, roles, deadlock and buyout terms. Insurance covers general liability, a commercial auto policy and Ohio's state workers' compensation fund. The launch uses Ries's build-measure-learn loop with checkpoints at 30, 60 and 90 days.
Where the marks sit in the BUS 484 Module 7 rubric
Papers on legal form and launch earn their marks through a fair account of each option, a justified recommendation, attention to the people issues of founding and a launch plan with measurable steps. This example presents each structure fairly, including its drawbacks, and relies on SBA and IRS guidance for the legal and tax descriptions rather than on informal sources. The recommendation is tied to the founders' actual situation, with a clear point at which they would reconsider. Wasserman's book on founder dilemmas grounds the agreement in research, while Ries's book and Blank's Harvard Business Review article shape a launch that tests assumptions instead of spending heavily up front. The paper also notes that it is not legal advice and that an attorney and accountant should review the final choice, which shows professional judgment.
BUS 484 Module 7 help: mistakes that cost marks
Students often recommend an LLC in one sentence because it is common, without comparing alternatives or explaining the tax treatment. Instructors want the reasoning. Another frequent gap is ignoring the founders themselves; disputes between cofounders end many young companies, and an agreement written early is far easier than one written after a disagreement. Describe the default form that applies if founders do nothing, since many people do not realize they have formed a partnership. Check that tax statements match current IRS guidance and avoid promising specific savings. Do not forget insurance and workers' compensation when a business involves physical risk. For the launch, replace general goals such as building the brand with numbers and dates. When state rules matter, name the state and the agency that sets them, and say where a reader can confirm the details.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Aspen University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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BUS 484 Module 7 questions, answered
What does BUS 484 Module 7 usually ask for?
Aspen's BUS 484 covers legal forms and launch in this module, so a paper choosing a business structure and planning the venture's opening is typical. Check the prompt in your classroom for required parts.
What legal form does a business have if the founders do nothing?
A single owner is treated as a sole proprietorship and two or more owners as a general partnership, both of which leave the owners personally liable for the business's debts.
Is an S corporation a type of company?
For many small firms it is a tax election rather than a separate legal form; an LLC or corporation can elect to be taxed as an S corporation if it meets the requirements.
Where can I find a free BUS 484 Module 7 sample paper?
The complete paper appears above: a two-founder cleaning company comparing four legal forms in a table, with a founder agreement, insurance and a ninety-day launch.
What is a minimum viable product?
The simplest version of a product or service that lets a founder start learning from real customers, so that later spending is guided by evidence.