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 c - corporation s - corporation sole proprietorship

Explanation:

• Limited Liability Company (LLC): While it offers limited liability, it has restrictions on going public and may not be ideal for future public share sales.
• C - Corporation: Allows for easy growth, can have non - US citizen shareholders, and offers limited liability. It is also the most common structure for companies that plan to go public.
• S - Corporation: Has restrictions on the number and type of shareholders (e.g., cannot have non - US citizen shareholders in some cases as per IRS rules) and has limitations on going public.
• Sole Proprietorship: Offers no limited liability protection.

Answer:

C. C - Corporation