You are a tax advisor; and your client wants to open a new business.

Provide an example of a hypothetical business that the client wants to start.

Explain the different business formation options to your client, recommend the optimal choice, and explain the tax advantages of your recommendation.

Assume the client in the scenario above has significant investments in the stock market.

Discuss the impact of the investments in the stock market on the initial business formation selection.

Support your position with examples of tax advantages.