Question

Anthony is starting a business and he is thinking about the costs associated with getting his business established because he does not have a lot of money to spend. Which form of ownership would cost Anthony the least to set up and why?

a. A partnership because he can share expenses with his business partner.
b. An S corp because he would not be payble double taxation.

Answer 1

a. A partnership because he can share expenses with his business partner.

Step-by-step explanation:

Anthony needs to fund his investment and their current wealth is not enough thus, it needs a partner who can contribute capital into the business. Of course, this will not come for free, the investor would receive a share of the potential gains in return to share shares expenses.