You and your two best friends have decided to set up a business engaged in the manufacturing and sale nationwide of industrial equipment. You have decided to set up your business in New Mexico. You have different opinions on what legal form to use for the business: you insist on an LLC, friend A prefers a Limited Partnership, while friend B insists on a C Corporation.

Instructions:

1. Read Chapters 21and 22 and conduct any necessary further research about New Mexico corporations law

2. Add all useful facts to this scenario

3. Explain, for each of the options advocated by you and your friends, what would be the advantages and disadvantages from the points of view of liability, taxation and capacity to attract investment for your business

4. Complete theessay by explaining what form you believe should be used (you can suggest a different one if you believe the three of you have it all wrong!)and why, under the circumstances of this business, the one you chose is the preferable form.