Legal entity for your new business

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Reference no: EM132227335

Choose five factors from the list below that you would personally deem most important if you were selecting a legal entity for your new business. Legal Entity Choice – Factors to Consider

Minimal start-up complexity/legal costs

Owners’ personal assets are shielded from company liabilities

Owners’ rights and responsibilities are customizable

Future initial public offering is imminent and/or desired

Business losses can potentially offset owners’ personal taxable income

Minimal restrictions on the number and/or type of owners

Ownership interests are easily transferable

Earnings will typically be distributed to owners vs. reinvested

Prefer to avoid the imposition of self-employment taxes

For each of your five choices, indicate the “right” legal entity choice(s) that best matches your preferred outcome (for example, if you have 200 unrelated best friends and it is important to you that all of them are co-owners, then it would not be wise to choose an S-corporation for your business).

Conclude your post by explaining which legal entity type you would have ultimately chosen.

Reference no: EM132227335

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