G.H. Bass is a shoemaker that has been working as a sole proprietor for the past 2 years. Bass does not have any partners in the business. He has been selling his shoes online and takes special orders for clients. A very heavyset man by the name of Drissle James buys a pair of loafers from G.H.Bass sized 15 wide and feels very conformable walking in the shoes. Because of the extraordinary size of the shoes and the amount of materials needed to make the shoe, there were a few gaps made in its construction. As Drizzle was walking down the street, the shoe became unraveled and caused Drizzle to trip and fall into a ditch causing injury. Drizzle paid a good sum of money for the shoes and was severely disappointed in its construction. Drizzle sued Bass for negligence in the creation of the show and asked the court to give him compensatory damages for his injuries, suffering, and damages from his inability to work. ( Special damages). A jury granted Drizzle an award of $40,000 in compensatory damages plus attorneys fees. Bass only invested $10,000 into the business.

Remember, G.H. Bass is a sole proprietor and has no liability shield. He can only represent himself as an individual who makes shoes. Assuming options such as tax liability, limited liability shields, and ease of formation;

1. What kinds of business forms do you think that Bass should have formed in this scenario?

2. If G.H. Bass had a partner in the business, what kind of advantages would he had been able to have over a sole proprietorship?

3. If G.H. Bass had a partner in the business and formed an LLP, what kinds of advantages would he have been able to have over a general partnership?