Sam Jones, Mary Adams, and Larry Brown have been talking about startingtheir own business for several years. Sam is an electronic repairman, Mary isa partner in a large law firm, and Larry is an excellent salesperson. Sam andLarry will work in the business on an equal basis. It costs $100,000 to startthis business. Sam has no money, Mary has $60,000, and Larry has $40,000.If they form a partnership, how would you recommend that they organize?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
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Sam Jones, Mary Adams, and Larry Brown have been talking about starting
their own business for several years. Sam is an electronic repairman, Mary is
a partner in a large law firm, and Larry is an excellent salesperson. Sam and
Larry will work in the business on an equal basis. It costs $100,000 to start
this business. Sam has no money, Mary has $60,000, and Larry has $40,000.
If they form a partnership, how would you recommend that they organize?

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