Note 5
Business Entity Formation
An established company does not normally require consideration of business entity formation because the activity occurs within and will directly benefit an existing company. However, opportunities for new business formation can arise during innovation and product planning efforts, especially when the efforts are being made by a start-up organization. An established company also may choose to spin out technology as a separate company when it views that technology as not fitting the existing company’s strategy. In addition, technology emerging from a government or university laboratory has the potential to stimulate a new business entity.
There is no “one-size-fits-all” approach when it comes to the choice of ...
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