Joseph, Judd, and Blair have decided to start a business of manufacturing kids' pajamas. Joseph and Judd will each invest $10000 in the business. While they do not want to participate in the day-to-day running of the business, they still want to have an active role in the management. Blair has no money to invest but she has years of experience in making and distributing pajamas.

Blair's son, Thomas also wants to invest $60000 in the business. He wants to have a steady income from his investment. However, he does not want to be involved in the management except directing how his investment of $60000 is spent.

Required

With reference to the Corporations Act 2001 (Cth) and case law, you are required to answer the following question:

1. Discuss what legal structure you would advise for their project: a partnership, an incorporated association, a company (if company, provide details on the type of a company) with at least three advantages and disadvantages. Why would you recommend this structure? Provide and define each details.