Buddy operates a handyman business performing various home repairs and renovatio

Question

Buddy operates a handyman business performing various home repairs and renovations. Buddy is successful and has enough loyal customers to keep him busy, along with at least two workers. Buddy occasionally rents out some of his small equipment to other handymen and clients.

Buddy also purchases homes that need renovation and then rents or sells the properties, depending on the market. Most of the homes he owns are heavily mortgaged.

Buddy and his wife own a house, in which they have a reasonable amount of equity. Buddy

Explanation / Answer

Since the assets that he buys are highly mortgaged , he should go for private limited firm, because in such firms he will have no liability for repaying the debt in case his business fails.

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