Reference no: EM132996969

Stephanie and Suzanne are sisters who want to start a swimming lessons camp. They both have considerable experience working with children, and both were on the USA Olympics swim team. Their parents Mr. and Mrs. Lancing want to help their daughters by investing $100,000 into the business, however, they do not want any involvement in the day to day operations of the business. The sisters have spoken to an insurance agent about getting insurance to cover the potential liabilities of the business, but they were told that they can't get insurance to cover this type of high-risk business (because of the potential for personal injury). They come to your firm seeking advice about forming their business; they are particularly concerned about their potential liabilities, especially to any children that may be hurt by drowning, allergies to water, etc. What business form(s) would you recommend to your supervising attorney for this business? Why? What are the advantages and disadvantages of this business form? Explain what protections this business form would offer them from potential liabilities. Finally, what role, if any, would the parents and their investment have in the business.