As an accountant for the consulting firm Insite, you are asked by a client to provide advice on the form of organization her new business in the medical industry should take. Aft er a brief conversation, you have learned the following about your client's needs:
1. The client has several children whom she expects to become involved in the business, and to whom she will want to transfer ownership in the future.
2. Companies in this industry tend to be sued frequently.
3. Profit (and taxable income) are expected to be significant in the early years.
4. The company is expected to grow significantly, and your client expects to need substantial funding in the next few years to manage this growth.
Instructions
Write a brief report to advise your client on why organizing as a corporation may, or may not, be the appropriate choice.