We have been hired to analyze and recommend an appropriate business form for a manufacturing concern that is currently operating as a sole proprietorship. The business owner wants to minimize the liability of the business. Since the business is about to expand, it requires investment. The owner wants to have the most appropriate form of business, which ensures maximum tax benefit, longevity of the business, decision-making freedom, and the retention of profits.
There are various options available to the owner. They have to choose from Sole proprietorship, General partnership, and Limited partnership, C-corporation, S-corporation or Limited Liability Company to have an ...