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.

Question

Business

Rambler

12 April, 19:50

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.

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Answers (1)

Know the Answer?

Alicia Dean · Answer 1

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

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.