Problem: You and a friend are considering forming a business organization to manufacture and sell widgets. You suspect that the company will show a loss during the first two years of operation. You also know that another manufacturer of widgets has suffered three product liability lawsuits totaling $300,000 within the past year. Additionally, you are married to a doctor who makes a very high annual income.
What form of business organizations should be selected under the circumstances? Fully explain why you selected this form?
Discuss: taxes, liability and administration.