Analyze business entities of sole proprietorship-corporation
Analyze the following 5 business entities and discuss the advantages and disadvantages of each both generally AND as they relate specifically to the facts given below. At the end of your paper, give your opinion as to the best business entity for your client under the circumstances presented by the facts below. SUPPORT YOUR OPINION. (Make sure you read Chapter 29 before attempting this assignment!) Note: There is no right or wrong answer for this assignment. This assignment is about analysis! The business entities are:
1. Sole proprietorship
2. Corporation
3. Partnership (General)
4. Limited Liability Company
5. S Corporation
You are an up and coming attorney and one of your best clients is Charlie Shine. Charlie is on an extended leave of absence from his previous job of television star and wants to start an escort business as his second career. He wants your advice concerning what type of business entity he should use.
He presents the following list of concerns to you, in no particular order of importance:
• Charlie is quite wealthy and wants to make sure he gets protection for his substantial assets, especially from liability and taxes.
• Charlie doesn’t like the hassle of paperwork and would prefer to do as little as possible.
• Charlie wants to have control of his new company. In case he is able to revitalize his television career, he wants to make sure the company continues to run just like he wants it to run, without changes, whether he is personally at the helm or not.
• If Charlie decides to sell the business someday, he wants to have control over the decision to sell without having to get approval from other people.
• Charlie is not opposed to sharing ownership with his friends and family as long as he can maintain control.
• Charlie is certain that his new business will be successful. Some day he would like to see his business in cities throughout the country.
Charlie previously consulted with another attorney friend, Bambi Shell about this matter and Bambi convinced Charlie that the 5 business entities listed above were the best choices. Now, Charlie wants you to help him pick the entity he should use from the 5 suggested by Bambi. Charlie says he’ll go with whatever you suggest.
As Charlie leaves your office, he tosses an empty airline vodka bottle toward your trash can but he misses and it hits you between the eyes. You grab it to throw it back at him but he has already closed the door. You wince and get to work. Winning!
