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Scenario: You and Lue, both sole proprietors, want to combine your businesses into a single entity called Shining Surfaces. You operate a residential and commercial painting business with 5 full-time employees and 2 part-time employees, and 4 independent contractors. Lue operates a commercial and residential window washing service with 6 full-time employees.
You have more business experience, so Lue asked you to collect information to recommend a business structure (also called “business form”) for Shining Surfaces.
After researching business structures, you compile the information to use in discussion with Lue.
A. Create a comparison chart that shows various business structures and compares and contrasts each type of structure. You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.
B. Write a memo to Lue recommending a business structure for Shining Surfaces that best minimizes tax and personal liability for the new business and its owners. Explain and justification your recommendation specifically and in detail.
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