Problem
Mark and Marsha recently graduated from the Law School and want to start a general practice law firm together. Since they were friends for a long time and graduated at the top of their class, they are confident in each other's ability to practice law. Each of them has about $20,000.00 to invest in the new law firm, and neither has any significant personal assets besides two secondhand cars from their law school days. They are unsure of how to form their business association, and they visit the consultancy company that you work for to learn about their options. Your supervisor advises you to recommend that they form a LLP, a LLC, or a professional corporation.
Task
• State the various types of business organizations that exist and explain the distinguishing characteristics of each.
• For the scenario above, what form would you recommend and why? In answering this question, discuss the liability issues of your choice.