Business Formation Options

Scenario: Widget World (WW) is an idea 4 friends created in their garage. They agree they will be even partners in the business and share "everything" equally. They expect that each person will have to "kick in" $2000 at first to start the business. Also, each member is expected to work 10 hours a week to manufacture the widgets they need to sell. They think they can produce 100 widgets a week and will charge $10 per widget.

• which form of a business entity you will choose and compare it to each of the friends suggestions.
• Be sure to explain the implications for each member as to the tort/business/tax liability between each of the examples and why you chose whatever formation you decided on.

References notes: to help in study