You and your classmate set-up a business in September 2022, and began to trade in goods under the company. At the time, you were were not sure if it was going to succeed, so you set it up so it operated as a sole proprietorship, where one of you was selected to be the employer, and the other decided to work as an employee. After a couple months success you revisit that decision and wonder if there is a better business form that the company should switch to. You also are aware that the potentisal for liability exists. You take into account the following details:

• The owner has no personal assets
• The owner also has a day job earning $40,000.00 per year
• The employee has personal assets including a beach house and $150,000.00 in savings
• The employee has a salary of $90,000 and does not spend very much of the income earned from being employed by the business

Now that the business is a success, identify which business form is the best option for the employer and the employee now in light of the business' success, personal assets, savings and income. Provide a brief explanation for why this new business form is the best option. 

Answer rating: 100% (QA)

Considering the success of the business and the potential for liability it might be beneficial for b... View the full answer