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Details: Your client through YOUCPA-a 50-year-old owner of a firm-has requested that she become a sole proprietorship in the state. The owner does not like paperwork and reporting of information. Her goal is to keep the business simple for her. The firm will have losses in the early years. However, you forecast steady profits for the firm after the 3rd year. She is contemplating passing on the firm to her son, Kate.After looking at this situation, you are contemplating recommending that she form a limited liability corporation (LLC).
• Describe the advantages of each of the following:o A sole proprietorshipo A limited liability corporation
• Do you recommend that this client choose an LLC or not? Explain your rationale.
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