Problem
As an accountant for the consulting firm Insite, you are asked by a client to provide advice on the form of organization her new business in the medical industry should take. After a brief conversation, you have learned the following about your client's needs:
1. The client has several children who she expects to become involved in the business, and to whom she will want to transfer ownership in the future.
2. Companies in this industry tend to be sued frequently.
3. Profit and taxable income are expected to be significant in the early years.
4. The company is expected to grow significantly, and your client expects to need substantial funding in the next few years to manage the growth.
Create a brief report to advise your client on why organizing as a corporation may, or may not, be the appropriate choice. Make connections between the information shared and the introduction lesson. Add detail and support your rationale.