Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 14

To Incorporate or not to Incorporate
Thomas O'Grady and Bryan Rossisky have decided to start a small business buying flowers, shrubs, and trees wholesale and reselling them to the general public. They plan to contribute $5,000 each in startup capital and lease a 2.5-acre tract of land with a small, portable sales office.
Thomas and Bryan are trying to decide what form of organization would be appropriate. Bryan thinks they should create a corporation because they would have limited liability and the image of a large organization. Thomas thinks a partnership would be easier to start and would allow them to rely on the combination of their talents and financial resources. In addition, there might be fewer reports and regulatory controls to cope with.
What are the advantages and disadvantages of their forming a partnership?