Dr. Smith and his wife are both medical doctors and they just completed their medical residence at a local hospital. While attending your graduation party, Dr. Smith and his wife learned that you just earned your MBA. The Smiths approached you for advice on the legal form of business they should elect for their medical practice they are planning to open. The Smiths are interested in understanding each form of business organization and advantages and disadvantages of each form.
In advising the Smiths, please address the following questions:
1. Compare and contrast
a. the forms of business organizations, advantages, and disadvantages.
b. general partner vs. limited partner?
c. limited liability partnership vs. a limited liability company?
2. Explain the advantages and disadvantages of organizing a business as an “S-Corporation?”
3. Explain if the form of business organization impact the control of the firm and ethical behavior.
Based on your discussion, explain which form of business organization you would advise the Smiths to elect. Defend your response.