Your best friend is a successful sole proprietor. Per the most recent valuation, the FMV...
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Your best friend is a successful sole proprietor. Per the most recent valuation, the FMV of his business is $ million. He wants to grow the business and ask you to invest $ million cash in exchange for share of the new business. Per the business plan, the company is expected to generate $ loss in year $ loss in year $ income in year $ income in year and $ million in year but there is no guarantee for such future performance. Your friend is subjected to the highest income tax bracket. No NOL.
Question Your friend asked you to decide which entity type C corp, LLC taxed as a partnership or S corp will be best for the new business. Choose one and explain why you selected that entity type.
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