What kind of entity fits the boys and why

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Your new client seeks your advice on setting up a new business. They do not know which form of entity they should establish and want your opinion. The facts are that the new client is composed of 2 best friends Sam and Pete seeking to operate a ice cream store. Sam is retired and really doesn't want to be on his feet all day or strapped to another job. Sam would just as soon help Pete financially get the business up and running, hang out to chat it up with the customers when he feels like it and not have to make any business decisions. Pete is 10 years younger, has a wife that hates Sam, has lots of business savvy and is anxious to get started, put in long days and run the business as he sees fit. Both have agreed that they will split whatever profits the business produces as long as Sam is funding the capital and Pete is doing the work.

What kind of entity fits the boys and why?

Reference no: EM13134295

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