Exercise $12-2($Static$)$ Forms of organization LO C$1$

For each separate case, select which type of organization should be formed.

Sharif, Henry, and Korb want to start a tech firm. They are deciding between an S corporation and a C corporation. The founders want limited liability, but they also want to avoid paying corporate income taxes.

Jackie and Susie are starting an accounting firm. They are deciding between a general partnership and a limited liability partnership. It is crucial to Jackie that she has limited liability and is not personally liable if Susie is negligent.

Rob and Bran want to form a snow removal business. They are deciding between a general partnership and a limited liability company. Bran says it is important that the two have limited liability and do not pay corporate income taxes.