Problem:
A friend has decided to start a new business, and has asked you to assist him. His primary concern is what type of entity to use for the business: sole proprietorship, Partnership, S Corporation or C Corporation. Based on this information, please do the following:
Required:
Question 1: List a minimum of five (5) questions that you would ask your friend in order to help him choose the best entity.
Question 2: Explain, in detail, how each of these questions relates to or is affected by the choice of the four business entities listed above.
Note: Provide thorough explanation of the given question.