Gerald is an entrepreneur who likes to be actively involved in his business ventures. He is going to invest $500,000 in a business that he projects will produce a tax loss of approximately $125,000 per year in the short run. However, once consumers become aware of the new product being sold by the business and the quality of the service it pro vides, he is confident the business will generate a profit of at least $200,000 per year. Gerald has substantial other income (from both business ventures and investment activities) each year. Advise Gerald on the business form he should select for the short run.
He will be the sole owner.