Mike, Adam and John want to establish a restaurant called EATs. Mike is a retired bookkeeper and invested $20,000 in this venture. Adam and John both invested $10,000. Mike is an excellent baker while Adam and John graduated from culinary college and focus on the appetizers and main courses. They will all share equally in the work of the restaurant. Mike, given her background in bookkeeping, will do the financial records for the business.

They heard about a local restaurant owner that went bankrupt due to an outbreak of food poisoning from his restaurant. Until then, Mike, Adam and John planned to register their business name, lease the property, and buy the necessary equipment and supplies. After hearing about the other restaurant owner, they are very nervous and want to discuss what they can do to protect themselves.

QUESTION:

Identify and briefly explain the (relevant) business forms, including subtypes that are available to Mike, Adam, and John, given the provided facts.

Provide two advantages and disadvantages for each of the business forms that you identified in part (i). Be thorough in your answer.

Which of these business forms would you recommend in the circumstances? Be sure to indicate why you would recommend it and why you would not choose the other(s), including any subtypes?