Issue

The Smith family has a very successful family tea shop that also provides wireless Internet access and live entertainment. They believe that there is a great deal of growth opportunity in such tea shops and plan to eventually expand, perhaps even franchise. After meeting with their lawyers and accountants, they realize they need to limit their personal liability by changing their business structure to either a corporation or a limited liability company (LLC).

Using the information in Chapters 19 and 20 of your textbook, together with the lecture notes and the readings in this module regarding corporations and limited liability companies (LLC), make a recommendation as to which you would recommend to the Smiths. Provide at least three reasons for your recommendation.

They already understand that both forms of doing business have limited personal liability and this should not be one of the reasons you give them.

Initial Discussion Post

1. Would you recommend the Smiths form a corporation or a limited liability company (LLC)?
2. Three rationales,other than limited personal liability, for your recommendation, are:

a.

b.

c.

Number your answer to each question separately in separate paragraphs.