Business Structure

On 2 May 2020 the Browns, new clients, came to see you regarding investments opportunities. Andy and Tina Brown are preparing to operate a small business called Exam Ready Café on QUT’s City campus which specialises in comfort food for stressed students. Andy will perform the administrative duties such as sending bills to customers, answering the phone, and taking orders from stressed students as he has a calm personality. Tina is not a people person so she will cook and get orders out. Andy and Tina are married with 2 young daughters who they hope will continue the business. Both Andy and Tina want involvement in the management and ownership of the business. They intend to hire more staff, particularly QUT students, and wish to see the business continue for decades to come. Tina is aware that another operator has just been sued and was found liable for $300,000 dollars in damages after some plastic was found in a sandwich on campus. She is familiar with the people and a process involved however and believes appropriate food safety standards weren’t being followed. You are asked to provide advice on how the venture should be structured. This is to be communicated in a letter of advice to Andy and Tina setting out your recommendations for an appropriate business structure and why this choice is beneficial, along with any negatives. The facts are as above;