The Leoncavallo F1 Racing Team is an ongoing project with a long-term goal. Being that our ultimate and primary goal is to reach Formula One and to compete in Grand Prix events, this Team has chosen not to incorporate for the time being and will do so when the appropriate time comes. When this Team incorporates, it will do so in two steps which will be decribed below:

1. Limited Liability Corporation

In the first stage of our incorporation, this Team will become a Limited Liability Corporation (Société à responsabilité limitée (Sàrl)) in Switzerland, meaning that its capital will be limited to a maximum of CHF 1'000'000.- and will need to provide a minimum of CHF 20'000.- in capital. In case of bankruptcy, the Team will only be responsible for the capital it has invested. However, in order for the Team to be recognized as a legitimate commerce, it will need to be founded under written form, witnessed by a notary; and will need to register in the Swiss Register of Commerce (Registre du Commerce)

2. Joint Stock Corporation

Prior to our planned entry in Formula One in 2014, the Team will be transformed into a Joint Stock Corporation (Société Anonyme (SA)) in Switzerland, meaning its capital will excede CHF 1'000'000.- and its responsibility in case of bankruptcy will be relative to the Team's debts. However, in Switzerland, a Joint Stock Corporation is considered and recognized as a Moral Person, meaning that the private property of any of the Team's members or executives can be ceased from their posession in case of bankruptcy; therefore, the assets of the Team as a company can be sold in a public auction to cover debts, if these are insufficient, the remainder will be recognized as lost.

The Team will have to modify its registration by the Swiss Register of Commerce (Registre du Commerce) in order to be recognized under its new form. The foundation of the Team as a Joint Stock Corporation will have to be done in writing in the presence of a notary.