Using the following criteria, select the best business form for your scenario.

Criteria:

Startup process: automatic vs. filing requirements

Financing

Ownership/Management {control}

Limitations on Liability {still need business insurance}.

Continuity of life

Taxes

Your choices are:

a. Sole Proprietorship

b. Joint Venture

c. Partnership

d. Limited Partnership

e. Limited Liability Company

f. Corporation

Freda is a stay-at-home mom whose youngest child just started first grade. Freda would like to earn extra money while her kids are at school. She wants a flexible schedule because she likes being available to volunteer at the school when needed. While searching the Internet, Freda discovers Sugar-Girl, a cosmetic company that will sell her cosmetics at a reduced rate and allow her to resell them to friends and neighbors for a maximum profit of 15%. Any cosmetics Freda does not sell after six months may be returned for a full refund. After doing her due diligence, Freda learns that the company is very respected, the product (which is not tested on animals) has a good reputation, and that 54% of the sales people, report an annual profit margin of 12.5%. Freda would like to become a Sugar-Girl. What type of business structure would be best for Freda and why?