Question
Hi guys! I need some help, please! John Edwards and Phil Steele want to start a business selling Chicago-style hotdogs at all public parks in
Hi guys! I need some help, please!
John Edwards and Phil Steele want to start a business selling Chicago-style hotdogs at all public parks in their hometowns on Saturdays out of kid-friendly travelling stands. They know somewhere between 300 and 400 families attend games every Saturday, and, currently, no food concessions are available. John and Phil know each other from a prior job but arent necessarily friends. John has a young child and a house, which is almost paid in full. Phil is single, has no family, and rents a condo. They are placing $100,000 into the business to start it ($50,000 each). John is concerned with being taxed twice for corporate profits; Phil is concerned only with making a profit.
Should they form a corporation or an S Corporation? Why? What are the advantages and disadvantages to each in their specific situation?
Thanks in advance!
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