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Scenario: John is an analytical chemist and has decided to go into business for himself. John plans to offer chemical analysis services to manufacturing companies. He plans to operate his business out of his home, but will also be using specialized and expensive chemical analysis equipment located at a local university. The chemicals that John uses in his work and that he analyzes are sometimes classified as hazardous substances. John has some money saved and does not currently expect to need to borrow money. He believes that he will be making a profit very quickly. His wife plans to help him with bookkeeping and paperwork.
A. What business form will be the best one for John? Why? Please consider all alternatives and discuss pros and cons of each alternative in areas such as personal liability, costs, paperwork and ease of administration, taxes and ability to obtain financing. Below is a sample chart.
B. What other steps would you advise John to take?
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