Entity Formation

9284Carla plans to open Carla’s Pets Store, a pet sales and pet supplies outlet, and to hire Quimby and Ruth. Carla will invest only her own money. She does not expect to make any profit for at least two years and to make almost no profit for the first three years, but she hopes to expand eventually.

· Which form of business organization would be most appropriate?

· What are the main characteristics, advantages, and disadvantages of this form of business organization?

· If Carla wants to obtain additional capital to expand the business, but does not want to lose control of the company, what is her best option?

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