4-6pg

Margaret and Jeff Wilson have decided to start a manufacturing company. They anticipate estimated revenues of $2,000,000 their first year. They expect to have at least $500,000 in profit. They feel that they will need to generate additional funding to help with operating expenses and the purchase of additional equipment. They anticipate having to employ 50 individuals and purchasing $150,000 in capital investments. You are hired as the chief financial officer and have full control over all financial and taxation policies.

• Explainthe formation requirements for a sole-proprietorship, partnership, corporation, and limited liability companies. Discuss the advantages and disadvantages of each of these four forms of business structure.
• Contrast some of the tax implications of deciding to choose one form of business structure over another. (Note:If you choose a limited liability company, you also have to choose your tax structure).
• Which form of business structure would you recommend to Margaret and Jeff choose that would grant them the best tax benefit or advantage?Support your decisionin detail.
• Would your recommendations change if Margaret and Jeff expected to make $100,000 and there are no future plans to hire any employees or make any capital investments? Why or why not? Explain your rationale.