Chapter 1, Problem 35DQ

You are an accountant with a client that wants to set up a new company.  She has come to you to ask what type of company to form.  She is trying to decide between a corporation, an LLC, or a sole proprietorship.  Taking into account the ability to raise capital, liability protections, taxation issues, ability to transfer ownership, and any other aspects you can discover discuss the pros and cons of the various entity forms.  You can use your textbook but you should consult other courses as well.   (It depends on what kind of company your client is opening and what they want to accomplish.  The best you can do is give the client some information to think about. This post should cover the general aspects of the various type of business entities.)

Elaine wants to invest in a company, what financial statement should she will check first?

In your everyday consumer interactions, would you rather do business with a sole proprietorship or a corporation? Why?