you need to create a legal structure for your small business. you have plans for it to grow and hope in the…

you need to create a legal structure for your small business. you have plans for it to grow and hope in the future to sell shares to the public. your startup partners are citizens of mexico and japan. you do not want to be personally responsible for business liabilities. which legal structure should you set up for your business? c - corporation limited liability company sole proprietorship s - corporation

you need to create a legal structure for your small business. you have plans for it to grow and hope in the future to sell shares to the public. your startup partners are citizens of mexico and japan. you do not want to be personally responsible for business liabilities. which legal structure should you set up for your business? c - corporation limited liability company sole proprietorship s - corporation

Answer

Brief Explanations:

A C - Corporation allows for selling shares to the public and provides limited liability protection. A Limited Liability Company (LLC) is more flexible but not typically used for public share - selling. A Sole Proprietorship exposes the owner to personal liability. An S - Corporation has restrictions on the number and type of shareholders (non - US citizens can be a problem in some cases). Given the goal of selling shares to the public and having limited liability, a C - Corporation is the best choice.

Answer:

C. C - Corporation