Imagine that a friend is starting up a business and asks you what type of legal business entity she should create. She explains that she really wants to keep what she earns, saying, "I don't want to pay a penny more in taxes than I have too!"

This is not a simple question, but you want to keep it relatively simple for the sake of your conversation with her. You'll need to know a bit more before you make your recommendation. Then of course, you'll have to explain to her why your recommendation is the most prudent decision.