Buck and Sally Starnes formed the Starnes Pie Cooperative. The company makes pies, all kinds of pie, with a specialty in Derby Pie, but has an assorted collection of fruit pies, meringues, and even a Boston Cream Pie that is to die for. At first, the couple operated the company out of their own kitchen and garage. With some success, Buck and Sally eventually quit their real jobs to work on pies full time. They hired several workers to help them process orders too. They are currently operating at full capacity for the assets in the business, and it looks like pie demand is unstoppable. Just last month, Kroger approached the couple to see about selling Derby Pie and Boston Cream Pie in the grocery stores and several restaurants are interested in making the couples pies a selling point on their menus.

Buck and Sally have operated the business as a sole proprietorship until now. They have approached you to help them with the firms growth, and they want to know the pros and cons of staying as a sole proprietorship or moving to an LLC or to a corporation. Help them make the decision be identifying the advantages and disadvantages of each. What is your best advice of the final decision?