An individual may choose two different business forms...?
Gerard is an incredible candy maker and would like to go into business for himself, but he needs some money to get started. His parents want to help him get his feet on the ground and start his career. They agree to invest in his business; however, they don’t want to be involved in any part of the business, they are just trying to help him out. Gerard asks your supervising attorney for advice on how to organize his business. Gerard may have two different business forms that could be used. Name each and provide a brief description of the benefits and detriments of each one. Then which of those two would you recommend and why?
- I was thinking LLC and sole proprietorship, but unsure about the second.
- Anonymous8 months ago
- EvaLv 78 months ago
S Corporation. Sole member LLCs can choose to be taxed as a sole proprietorship (Schedule C) or as a S Corporation. He could also choose to be a S Corporation and skip the LLC.