Please answer and writing your thinking.

Consider the following situation:

You and a friend, Chris, are considering starting a business where you sell collectible sports memorabilia. At this point, you have collected about $5,000 worth of inventory (at cost) and during the past three months have made a profit of over $2,000 by selling items to personal contacts and to small shops where you know the owner. While Chris has no inventory of sports memorabilia, they have successfully sold miscellaneous items through social media outlets like Etsy, Pinterest, and Facebook Marketplace. You feel that your experience with obtaining the sports collectibles merged with Chris' social media selling experience will make a successful business combination.

To begin the business, you will contribute your inventory along with $5,000 cash. You also have office space in your home. Currently, you are storing your inventory in a storage unit. Chris is able to contribute $5,000 cash to the business and will use her computer equipment. You and Chris currently have full-time jobs but are hoping that you may grow this business to the point that you will both be able to quit your jobs and work full time for your business. You have decided that you will continue to focus on obtaining merchandise and continue selling to your personal network. Chris will focus on developing online and social media sales. You and Chris have also discussed expanding your inventory and sales focus to include other sports-related items.

Chris also has a friend that is willing to contribute $5,000 to the business. The friend is interested in an equity investment with a return but does not want to be involved in the business.

The question to answer is: what form of business entity should you and Chris construct?

1 two possibilities of business entities you would consider for this scenario

2 the pros and cons of each these two forms of business

3 which of the two forms of business you would ultimately choose

4 your reason for choosing this structure