Marco Valez is comparing forms of business structure in order to make the best decision for the business he plans to form next month.He plans to be the only investor/owner,and he will also actively manage the business.He is convinced that the company will be profitable,so he wants to keep all of the after-tax earnings for himself.Which of the following forms of business ownership is Marco likely to choose?

Question

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Marco Valez is the only owner and investor, and he plans to actively manage the business. This makes a sole proprietorship the best choice for him. Sole proprietorships are easy and inexpensive to set up, require minimal regulatory compliance, and the owner retains all of the after-tax earnings. Limited liability company (LLC) and corporation structures are designed for businesses with multiple owners, making a sole proprietorship the better choice. Limited partnerships require at least one general partner who is fully liable for the partnership's debts, which doesn't suit Marco's desire to keep all after-tax earnings for himself.

Marco Valez Is Comparing Forms of Business Structure in Order