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? options: sole proprietorship, c - corporation, s - corporation, limited liability company

Explanation:

To determine the legal structure, we analyze each option:

• Sole Proprietorship: Involves personal liability for business debts, so it's not suitable as the user doesn't want personal liability.
• C - Corporation: Allows selling shares to the public, has limited liability, and can have non - U.S. citizen shareholders. This fits the user's plans of growing the business and selling shares to the public while avoiding personal liability, and also accommodates non - U.S. citizen partners.
• S - Corporation: Has restrictions, such as shareholders generally need to be U.S. citizens or residents, which doesn't fit as the partners are from Mexico and Japan.
• Limited Liability Company (LLC): While it offers limited liability, it has restrictions on selling shares publicly in the same way a corporation does, and the long - term goal of selling shares to the public is better achieved with a C - Corporation.

Answer:

B. C - Corporation