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Business Forms Selection- Legal Entities Scenario: You have three friends that want to begin a consulting business. Friend number one, has a good paying job,

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Business Forms Selection- Legal Entities Scenario: You have three friends that want to begin a consulting business. Friend number one, has a good paying job, a full time position, is willing to invest $20,000 to start off the business and co- sign to obtain credit for the business, but does not have time to participate in the daily operation. She/He also wants to own a portion of the business, share authority to direct its future, and share in a portion of the profits. Friend number two has just been laid off of her/his job. She/He is over extended on her/his credit, has a large mortgage payment, is separated from her/his spouse, has three minor children, and expects to be going through a divorce soon. However, she/he also has exceptional skills and expertise; she/he has made a lot of connections from her/his job, expects to bring in at least three high paying clients, and has plenty of time to dedicate to the business. Friend number three owns retail space and has agreed to lease the space or allow the company to use it as an investment, has an accounting background, is working part-time, has agreed to keep the books, arrange appointments and scheduling, order supplies, answer the phones and plan marketing strategies. Friend number three has three adult children that she/he would like to eventually inherit her/his share and maybe even participate in the business as employees Your friends have heard that you are in business school and are taking business lany;, and have sought your advice as they proceed. (For this question, assume it is ok for you to give legal advice.) parts of each question. You may need to refer to your textbook the Internet and other resources in order to fully address the questions Based on the above scenario please fully answer following questions 1. What ENTITY would you suggest they select for their situation to best meet their needs and goals? Fully explain your reasoning pros and cons for this entity

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