Rodney Nicole was excited as he talked to his friend Ali Pennycuff. “I bought the truck!” said Rodney. “You bought the food truck you were looking at?” asked Ali. “I sure did. It will only take me a week or so to do the interior modifications I need and then I will be in business!” replied Rodney. Ali knew that for the past two weeks, Rodney had been looking at a food truck that had become available in the area. It was Rodney’s dream to purchase a truck, outfit it with the proper equipment, and then begin serving made to order Cuban‐style sandwiches. “What are you going to call the business?” asked Allie. “I haven’t decided quite yet,” replied Rodney, “I’m thinking of ‘Canarias’ for the Canary Islands, or ‘Cubanos’ so it’s easy to remember what we will be serving.” “I like Cubanos for the restaurant name,” replied Ali “and what have you named the corporation you will be forming to run the restaurant?” “I’m not going to do that yet,” said Rodney. “It’s expensive and I’ll need all the funds I still have just to renovate the food truck and get it going. To start, I’m just going to operate as a sole proprietor. That will save me some money.” 

1. Considering Rodney’s situation, what would be some advantages to beginning his business as a sole proprietor? 

2. Considering Rodney’s situation, what would be some advantages to beginning his business as a C Corp. or as an LLC as suggested by Ali?