[Heart surgery invention] Winston and Noe patented a mechanism that will change open heart surgery forever.They are setting up a business to produce and sell their invention to hospitals and will take advantage of Noe's non-U.S.citizenship to help with sales in international markets.They hire Lenita,a corporate lawyer,to assist in setting up their business.Winston's largest concern is taxes.Noe,on the other hand,doesn't want to bother keeping corporate minutes and having board meetings as he is too busy.Both are concerned about being sued personally for products liability.
-Which of the following business organizations would best address Winston and Noe's concerns?
A) General Partnership,as it is only taxed once,and has no requirement to hold meetings or follow corporate formalities.
B) S Corporation or Corporation
C) LLC,because it is not double taxed,members are not required to follow corporate formalities or hold annual meetings,and members have only limited liability.
D) Corporation,because shareholders are not double taxed,are not required to follow corporate formalities,and are generally shielded from liability.
E) S Corporation,because shareholders are not double taxed,are not required to follow corporate formalities,and are generally shielded from liability.
Correct Answer:
Verified
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