Manny came to the U.S. years ago and now owns a successful auto parts business that he currently operates as a sole proprietorship. On a recent visit to reconnect with distant relatives in "the old country", Manny's daughter Jacqi met and fell in love with Moe, a very skilled but poor local auto mechanic. Moe has moved in with Manny's family while he is working on getting his immigration status in order. Manny has suggested to Moe that they expand on the auto parts business by adding a repair shop that Moe will run and that they will split the profits from the repair business. Manny tells you that his friends told him that he and Moe should form a Subchapter S corporation to run the business. 

Explain why a partnership structure may be a better option to run the business.

Answer rating: 100% (QA)

A partnership structure may be a better option for Manny and Moe to run the business for several rea... View the full answer