Question: Hortense and Gus are each starting a business. Hortense's business is an Internet startup. Gus...
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Question: Hortense and Gus are each starting a business. Hortense's business is an Internet startup. Gus will be opening a yarn store. Hortense needs millions of dollars in venture capital and expects to go public soon. Gus has borrowed $10,000 from his girlfriend, which he hopes to pay back soon. Should either of these businesses organize as an LLC? Strategy: Sole proprietorships may be best for businesses without substantial capital needs and without significant liability issues. Corporations are best for businesses that will need substantial outside capital and expect to go public shortly.
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