Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. For the past two years, Ann has tried to convince Jack to incorporate. She believes there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks the business should remain a partnership forever.

First, take Ann’s side, and explain the positive side to incorporating the business.

Next, take Jack’s side, and state the advantages to remaining a partnership. Last, what information would you want if you were asked to make the decision for Ann and Jack?