Scenario

Sheila is an engineering student at the Great University in Gainesville. She has developed an idea for a cellphone camera that takes photos of the user and then allows them to be placed in any scene they wish for posting to social media. Sheila believes this product will be highly successful, but she needs to determine how to start her business. She believes that she will start small, but will need to raise money for her projects at some point. If the product is as successful as she believes, then the company may need to sell shares of stock to raise capital for expansion.

Directions

1. What forms of business should Sheila consider and why?
2. Which form of business is the least likely to meet Sheila's needs?
3. What are the tax consequences of the entity you are recommending?