1a. Steve is a lawyer who wants to start his own law firm. He wants to partner u

Question

1a. Steve is a lawyer who wants to start his own law firm. He wants to partner up with at least two other lawyers in order to bring in more money and greater brain power. He will rent a nice office near the courthouse. Other than his lawyer partners, Steve will have two secretaries, one paralegal for each attorney, and one runner who will drive a small company-owned car. The company equipment will be nice furniture, fancy decorations, law library, computers, office equipment, and a coffee pot. Steve lives in his own house with his wife. Steve's personal wealth is $500,000.

Which of the following forms of ownership are not available to Steve?

A) Corporation

B) Partnership

C) Limited Liability Partnership

1b. What would be the main advantage to Steve for forming as a Professional Association rather than a partnership?

A) Steve would be able to raise more capital to fund the business

B) Steve would be protected from personal liability that arises from negligence of his partners.

C) Steve will be able to have single taxatioin rather than double taxes.

Explanation / Answer

1a-A) Corporation

1b- B) Steve would be protected from personal liability that arises from negligence of his partners

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