Problem: You are starting a business that sells pet treadmills. Initial market research shows a potential for high demand in affluent areas and cities with severe weather. You also foresee a lucrative international market and franchise opportunities. You have two options for capital: use your inheritance, which includes a multimillion-dollar home, or allow your two rich friends to join the business. You plan to use traditional marketing and sales methods as well as e-commerce. Before you can go forward, you must resolve the following:
What type of business entity should you form? Explain your choice.