Three years following your graduation with a business degree, you and three class mates began operating a consulting business. Your firm specializes in offering support related to payroll-and account-management computer applications. So far, your firm has relied on the four of you as its only consultants. A potential major client requests that your firm make a proposal for a year-long project. This project would result in your firm hiring several additional consultants and support staff. Because of the length of time and financial commitment this project may take, you and your co-owners take time to address the following questions:
How would your firm conduct business on such a large scale?
How could you limit potential liability for and by various consultants?
Which form of business organization is best suited to meet the needs of your growing firm?