For each scenario below, recommend a form of business organization: sole proprietorship, partnership, or corporation. Along with each recommendation explain how business profits would be taxed if the form of organization recommended was adopted by the owners. Also list several advantages that the owners would enjoy from the form of business organization that you recommend.
1. Keith, Scott, and Brian are new university graduates in computer science. They are thinking of starting a web page creation company. They all have quite a few university debts and currently do not own any of the computer equipment that they will need to get the company started.
2. Dr. Marble and Dr. Sampson are new graduates from medical residency programs. They are both family practice physicians and would like to open a clinic in an underserved rural area. Although neither has any funds to bring to the new venture, a banker has expressed interest in making a loan to provide start-up funds for the practice.
3. Matthew has been out of school for about five years and has become quite knowledgeable about the commercial real estate market. Matthew would like to organize a company that buys and sells real estate. Matthew feels that he has the expertise to manage the company but needs funds to invest in the commercial property.