Reference no: EM132403592

John Edwards and Phil Steele want to start a business selling Chicago-style hotdogs at all public parks in their hometowns on Saturdays out of kid-friendly traveling stands. They know somewhere between 300 and 400 families attend games every Saturday, and, currently, no food concessions are available. John and Phil know each other from a prior job but aren't necessarily friends. John has a young child and a house, which is almost paid in full. Phil is single, has no family, and rents a condo. They are placing $100,000 into the business to start it ($50,000 each). John is concerned with being taxed twice for corporate profits; Phil is concerned only with making a profit. Give John and Phil your advice on what legal structure they should use to form and operate the business.