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Running Header: Entity Selection Entity Selection Angela Calabaza Alex Liu Leo Martinez Steve Riedl University of Phoenix Online LEGAL ENVIRONMENT OF BUSINESS LAW/529 Gale Francis, Esq. August 21, 2005 Introduction Three former employees of ChipeX, Inc. have developed a prototype for a new microchip to power the next generation of personal computers. There are four basic elements that need to be addressed to start a business formation. There needs to be an idea/vision for the business, identify legal regulatory issues in creating a business, select professionals for business advice, and the legal entity choice that would be made for the business. Legal Entity Choice The idea of the organization is to develop manufacture and market the microchip that will power the next generation of personal computers. The new microchip is designed to perform better than the ones that already exist. A new corporation has to be formed. The main investment will come from venture capitalists provided they will take...

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