Module 6-1

TAX -655-X3952-17TW3

Question # 4

02-23-2017

Sam wants to help his brother, Lou, start a new business. Lou is a capable auto auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be arranged as a general partnership or a limuted partnership? Why? Should they consider any other form for structuring their business?

0 A. general Partnership because Sam will be providing business advice. The brothers may want to consider an LLC to provide limited liability.

0 B. Limited partnerships because Sam will be providing business advice. The brothers may want to consider a cooperation to allow for a separate tax identity.

0 C. Limited partnership because both brothers are starting the business. The brothers can consider an LLC to provide linited liability.

0 D. General partnership because both brothers are starting the business. The brothers can consider a cooperation to ensure ease of new owners joining at a later date.