Date: 31st December 2009MEMORANDUMTo: StudentFrom: SupervisorRe: New Client, Career Institute of America, Inc. (CIA)Date: December 31, 2009Summary of Applicable FactsCareer Institute of America, Inc. (CIA) was formed a year ago as a nonprofit corporation, but they are not sure that they want to remain a nonprofit. CIA is a classroom and online education organization that specializes in training students in the United States auto industry, one of this country's largest industries. The CEO of the company would like to retain most of the ownership and control of the company, because it is really his enterprise. He also has some concerns about the independent contractor agreement their instructors must sign when they agree to work for the company. He wants to be sure they are not construed as employees of the company and are viewed as true independent contractors.
Most of the company's income is from online training courses. The company makes its income from tuition for online courses and in the two small classrooms in which they teach traditional courses.
This is why they are not necessarily opposed to changing their form of business from a nonprofit organization to a for-profit business. Also, the employment contract the company provides to their instructors looks as if it was designed by an amateur and may not comply with the legal requirements for a valid independent contractor agreement.
Issues:The appropriate form of business organization for your client's businessI believe the appropriate form of business organization to meet the needs of the Career Institute of America, Inc. (CIA) is a for-profit franchise type of business organization which will allow the business owner to remain in control. Any outlets of the business are owned by individuals who are allowed to use the company name. The Franchisor owns and runs the business and the name...