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Peter, Paul, and Mary are planning on creating a new business to buy, restore, and sell classic cars. The three individuals have been involved in a number of business deals dating back to the 1960s. Each individual has a net worth of at least 2 million dollars. Peter has located an old auto dealership to be the showroom for the classic cars. Paul has restored many classic cars so he has developed the network for purchasing restorable cars. Mary is well-established promoter of new businesses and in-charge of determining the business plan, selecting the entity form, obtaining the external financing, and hiring the firm’s accountant. She will also handle most of the day-to-day management. Mary has narrowed the business entity choice down to a partnership, C or S corporation, or limited liability company. You have talked with Mary about this project at length in three different meetings. She wants your advice about selecting the appropriate business entity for the business. Prepare a short list of the pros and cons about using each of the four business forms that you can use at your next meeting with Mary and be prepared to make a final recommendation for Mary that includes tax calculations.
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Remember class, preparing a list of pros and cons do not mean just giving a definition of the three entities. Your information presented should be structured toward their prospective business. Please ensure your responsive include the necessary references and rules
