Wanda Willey is considering opening a franchised quick service restaurant (QSR). She believes that in a typical year she will gross nearly $1,500,000 and net $150,000 before income taxes. Harley, her husband, is expected to have tax- able income of $100,000 from his consulting business. His business is not incorporated. Wanda wants to avoid double taxation but also wants to limit her liability.

Required:

1. What form of organization do you suggest that Wanda use for the QSR?

2. How might Wanda overcome the liability problem without incorporating?