Question

you need to create a legal structure for your small business. you have plans for it to grow and hope in the future to sell shares to the public. your startup partners are citizens of mexico and japan. you do not want to be personally responsible for business liabilities. which legal structure should you set up for your business? limited liability company sole proprietorship c - corporation s - corporation

Explanation:

A C - Corporation is a legal structure that allows for limited liability (so owners are not personally responsible for business liabilities), can have shareholders from different countries (as in the case of partners from Mexico and Japan), and has the ability to sell shares to the public (which is a future plan for the business). A Sole Proprietorship offers no limited liability (the owner is personally liable for all business debts). An S - Corporation has restrictions on the number and type of shareholders (for example, non - US citizens have limitations in some cases). A Limited Liability Company (LLC) is more flexible in some aspects but may not be as well - suited for a future public share sale as a C - Corp in some regulatory environments.

Answer:

C. C - Corporation