On January 1st, John Joseph wishes to expand further into the winery business with his daughter Sheila and his son Donald. At the present time, the business is a sole proprietorship based in the Town of Southold in Suffolk County, New York. He approaches you to discuss which form of business entity would meet his needs as he has concerns over issues of business formation, management control, sources of funding, transfer of control, taxes, liability and dissolution.  

Peter Promoter has suggested that he consider going public and offers to assist in that effort, should he desire to eventually go that route.

By nature, John Joseph is a micromanager, who dislikes delegating authority, even to his adult children, who work in the marketing and operations parts of the business.

1. Explain to John Joseph what the considerations and factors that go into the business entities of sole proprietorship, general partnership, limited partnership, limited liability company and corporation? 
2. John Joseph wants to know how he can manage the risk of liability for such a business?
    
3. Would it make any difference if he forms a private closely held form of business entity versus a public corporate entity with diverse shareholders?

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When considering the different forms of business entities such as sole proprietorship general partnership limited partnership limited liability company LLC and corporation there are several factors an... View the full answer