Earl and his son, Tony wanted to start a motorcycle repair business. They want to share management
Question:
Earl and his son, Tony wanted to start a motorcycle repair business. They want to share management responsibility, but neither has any business education, and neither wants to have a lot of formal paperwork to deal with while running the business. They expect to incur losses for the first few years. They expect significant depreciation deductions from equipment purchases. They each file joint returns with their respective wives. Earl estimates a taxable income of $50,000 not considering the motorcycle repair business. Tony expects $40,000 of taxable income without considering the new business.
What is the most appropriate business form to use and what is your justification for recommending it?
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann