Philip is a client of yours and a software developer. He has developed a software program for use in air controlling. The software is to make sure that airplanes approaching airports or taking off from airports do not collide in mid-air.

Philip wants to go into business to market this software together with this wife and his two grown sons. Philip is realistic enough to expect that the annual turnover of the company will probably not exceed US $ 800,000.-- and no employees are necessary beyond the family members.

Philip asks you whether he and his family should incorporate a company or whether they should work together as a partnership. This is an issue which needs much more information and in-depth analysis. However, please give Philip a short comparison of the advantages and disadvantages of a corporation as compared to a partnership and give him some preliminary advice on his question!