E1–1 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. Ann has tried for the past 2 years to get Jack to agree to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that 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?