1

Colin decides to form a C corporation in Illinois. Within Illinois, the corporation would be considered a _______________ corporation, but in all other states, it would be considered a _______________ corporation.

Domestic; alien

Domestic; foreign

Foreign; alien

Foreign; domestic

2

Rose and three of her friends are starting a car-wash business and are discussing what business form to choose. Here are the things that are most important to Rose and her friends, in order from most important to least important: 1. They want to sell shares to 150 investors who have expressed interest (MOST important) 2. They want to be sure that their personal assets (house, car, bank accounts) are NOT at risk 3. All four hate taxes, so they want profits to be taxed once, if possible (LEAST important) Which business form would BEST fit this criteria? (NOTE that none of the answers fit perfectly, so pick the one that best achieves their most important objectives.)

C corporation

General partnership

Limited liability partnership

S corporation