At one of the seminars on how to expand your business, Kathryn met a woman, Joanne Kirk, who wanted to leave her employment and start her own business. She had money to invest and about 10 years of experience in marketing and advertising. Joanne did not have many contacts as her employment contract prohibited her from soliciting any clients of her current employer. Kathryn gave Joanne her card and suggested they meet to discuss a possible business arrangement between them. After the seminar, Kathryn called Joanne and the two met for lunch a few times. During those meetings, Kathryn discussed the possibility of Joanne quitting her job and the two of them creating their own business. Their meetings and discussion continued for a few months while Joanne was deciding what she wanted to do. As her discussions with Joanne progress, Joanne decided she would quit her job and come to work with Kathryn at Planting for your Future. She didn't want to be an employee. They needed to consider what form of business create. Kathryn remembered her business law class and that there are a few options but decided to contact a lawyer about which choice best suited Kathryn and Joanne.

Question:

Kathryn and Joanne must consider which type of business they wish to form. Please provide a detailed examination of the relevant business forms, including a description and an examination of the advantages and disadvantages of each for form. Which form would you suggest they use and why?