Moustapha and Ava want to form a business to buy and sell small appliances. They will both actively work in the business. They are concerned about personal liability. They estimate the company will not be profitable for five years and they want to be able to deduct any losses. Which form of entity should they use to accomplish their objectives? O limited partnership O any of the listed entities would accomplish their objectives O limited liability company O general partnership

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 24P
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Moustapha and Ava want to form a business to buy and sell small appliances. They will both actively work in the business.
They are concerned about personal liability. They estimate the company will not be profitable for five years and they want to
be able to deduct any losses. Which form of entity should they use to accomplish their objectives?
O limited partnership
O any of the listed entities would accomplish their objectives
O limited liability company
O general partnership
Transcribed Image Text:Moustapha and Ava want to form a business to buy and sell small appliances. They will both actively work in the business. They are concerned about personal liability. They estimate the company will not be profitable for five years and they want to be able to deduct any losses. Which form of entity should they use to accomplish their objectives? O limited partnership O any of the listed entities would accomplish their objectives O limited liability company O general partnership
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