Brian and his friend Dan wish to start a business in a small community. They will both work in the business full time. Each has a wife and two children, and each owns a home. Brian has rental property, which he earns income from, and Dan has a car collection worth more than $$1$ million.

Based on your understanding of the chapter reading, provide two advantages and two disadvantages of the types of business formations below. Identify which help Brian and Dan to avoid personal liability and why.

Sole proprietorships.

Partnerships.

Limited partnerships

Limited liability partnerships.

Limited liability company.

Corporation.