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Clint and Carlina are lifelong friends who have decided to open a bakery together. They are both experienced bakers who specialize in artisanal cheesecake, and they feel the world is in need of their creamy and decadent desserts. They are concerned about protecting their assets in case the business fails, about being able to pay the taxes for a business that is just starting out, and about the difficulty of setting up and maintaining the business.
What are the pros and cons of the different business entities they could form? (Go through the four (4) main types of business entities we have learned about). Which type of business entity do you think would be their best option and why?
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