Question

explain the legal reason, what type of business structure should ying consider to adopt a repeat of this expensive financial lesson and which will also him to keep business affairs private, identify the formalities that will be required in creating the new business structure.

Answer 1

My opinion is to choose a C- CORPORATION as it has the characteristics of both expensive financial lessons and will also keep the business affairs private since the ownership , control and management are separate things in a C- CORPORATION.

The formalities for creating a new business structure ( in our case C- CORPORATION)
1) Register your business name .
2)Apply for the Federal Tax ID Number.
3) Determine whether you need a state Tax ID number.
4)Obtain Business Permits and Licenses , if needed for the business you are starting.
5) Protect your business by obtaining the required insurance.
6)Open a bank account of your entity.
7) Consult the professionals ,if required.

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