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Question
Jose Rivera has decided to leave his job at Mattel and open a restaurant. Jose has never owned a business and never run a restaurant, but cooking is his passion. He plans to open the restaurant with his cousin, Miguel. Jose will not have to borrow money to establish the restaurant because his father died last year and left him a sizeable inheritance (he bought a new home, and a new car among other things, and established an investment account with a broker).
Jose planned on establishing the business as a sole proprietorship on the recommendation of his brother in law. His brother in law, Juan, has a successful consulting firm, and that is the type of business his brother in law established. Jose's daughter, Carmen, attends college and is majoring in business and has suggested that her father consider establishing the restaurant as a C Corporation. pretend you are Carmen (the daughter) and make the case that Jose establish the business as a C corporation.
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