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In: Accounting

Mark comes to your office to talk to you about an idea he has. He tells...

Mark comes to your office to talk to you about an idea he has. He tells you that he does not have cash to pay you but if you help him, he will compensate you with equity in the company. He talks about a crazy website were individuals can talk to each other online and socialize, something called “Facebook”. Knowing that the technology industry is booming, you agree. Mark asks you that he needs to form a business entity for his business idea. He wants a company that can grow as big as it needs to, Mark has big dreams that the company will one day be a multi-billion-dollar company. Mark also wants to be able to get as much funding and investors as possible. He wants the most liability protection possible, mostly since he predicts millions of users. Mark is not that concerned about taxes because he believes companies should give as much profits back to the community. Which business entity would you recommend for Mark? And why? Be as specific as possible, don’t forget to mention the tax treatment.

(no IRAC)

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ekkarill92 answered 2 years ago
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