Reference no: EM131777807

Question: What are your recommendation for the optimal business entity form for each of the following scenarios:

1. Melanie has a business where she sells cupcakes to the local community. She sells the cupcakes out of her basement which has access from her backyard. Patrons must walk down a set of stairs in her backyard, which often become icy in the winter time.

2. Brett and Jamal work together on a construction crew. They are interested in starting their own construction business where they will buy houses, remodel the houses, and sell the houses at a profit (hopefully).

3. Rebecca has an idea for a new online website where local contractors and potential customers will connect. The customers will primarily be homeowners looking for help with small repairs. Rebecca will match the contractor with homeowners through her website. Rebecca will charge the homeowner and pay the contractor 75% of the fee charged. Losses are certain in the first few years. However, she hopes to create franchises in local markets.

4. Samantha has a business selling hand-made quilts. She only sells the quilts online. No customers visit her house.

5. Daniel has a networking website. He only allows potential users to join if they have been invited by another user to join the network. A new user is charged $20,000 to become a member. Membership status is considered a major status symbol. Daniel hopes to take his company public by selling shares on a national exchange. What are the advantages and disadvantages of the sole proprietorship, partnership, Limited Liability Partnership, LLC, and Corporation forms of business entity.