What is the most appropriate form of business for CIA?.


TO: The Supervisor

FROM: Your Name

DATE: February 7th, 2019

SUBJECT: Appropriate form of business and instructor contracts for Career Institute of America, Inc. (CIA)

Summary of Applicable Facts: 

Career Institute of America, Inc. (CIA) was formed as a Delaware non-profit corporation one year ago. CIA provides both online and classroom training,a nd specializes in training students in the United States automobile industry. Last year, CIA received an one time grant from the U.S. Department of Labor retraining grant which is only available to non-profit organizations. Other than this grant, CIA earns revenue mainly from its online training courses. The courses are taught by instructors hired as independent contractors. The contract between CIA and instructors looks as if it was designed by an amateur. These contracts may not comply with the legal requirements for a valid independent contractor agreement. The current CEO is also the majority owner and controls the company’s business.


There are two main issues:

A. What is the most appropriate form of business for CIA?

B. How can CIA’s instructor contracts properly reflect the status of its instructors?

What is the most appropriate form of business for CIA?



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