Case | HBS Case Collection | September 2009 (Revised August 2011)

Scooter Lindley: The Formation Call

by Lena G. Goldberg

Abstract

Factors affecting decision making about appropriate types of business entities are explored in the context of advising a prospective investor with particular emphasis on why LLCs are increasingly "go-to" entities. The potential effect of choice of organization on litigation outcomes is illustrated using the Delaware Chancery Court's decision in Fisk Ventures, LLC v. Segal, 2008 WL 1961156 (May 7, 2008), and the practical implications of the differences between unincorporated and corporate entities are highlighted.

Keywords: Business Organization; Decision Choices and Conditions; Entrepreneurship; Investment; Lawsuits and Litigation; Delaware;

Citation:

Goldberg, Lena G. "Scooter Lindley: The Formation Call." Harvard Business School Case 310-036, September 2009. (Revised August 2011.)