It is very common for accountants to be asked to advise clients (and friends and family) about what type of business they should form. Small companies usually must decide between sole proprietorships, partnerships, Limited Liability Companies (LLC), S-Corporations, and C-Corporations.

You have a client that is considering forming a partnership for a new business venture. The client has asked you for advice and a recommendation.What would you tell your client?What are the pros and cons? Do you think a different type of entity would be better? What information might you need to make a recommendation?