Business Scenario Michael is self-employed and reports all of his income and expenses in his personal income tax return. Type of Business Jackson started a business, based in a different state, with his uncle. Due to the business's underperformance, they had to dose the business. Jackson, hd sever, ended up losing his house due to a litigation daim. DDX Co. is a shipping company. Tyler owned 1,000 shares of DDX stock. He found better opportunities and sold his entire stake in DDX to another investor Tyler, Jackson, and lose own an accounting firm in San Francisco. All share in the profits of the firm proportionately and file taxes at an individual level. According to their agreement, none of the owners will be held personally liable for the accounting firm's debt