You are advising Mr. Bill Gaits on the formation of a new venture.He plans to get together a group of investors to invest $30 Million in cash initially in an entity and have the entity borrow $30 million on a recourse basis to acquire a property.The venture is expected to lose $15 million per year for the first four years, and then start to turn a significant profit in later years.If the property is as successful as planned, Bill expects a publicly traded corporation to acquire it by offering its company stock that will be worth 10 times the original investment. The chances of this occurring are 40% according to Bill.If this occurs, Bill and his investor group plan to hold the stock for a significant period of time.Assume Bill and all in his investor group pay tax at the maximum individual tax rate and ignore any implications of the passive activity loss rules.

What are the issues involved in selecting the choice of entity for this new venture (general partnership, limited partnership, LLC, S corporation, or C corporation)?Which type(s) of entity would you recommend, and why?Please discuss multiple alternatives and not just one choice of entity.