Steve and Karen Are Going to Establish a Business Entity

Multiple Choice

Steve and Karen are going to establish a business entity. They expect the business to be very successful in the long-run, but project losses of approximately $100,000 for each of the first five years. Due to potential environmental concerns, limited liability is a requisite for the owners. Which form of business entity should they select?

A) General partnership.
B) Limited partnership.
C) C corporation.
D) S corporation.
E) Any of the above should satisfy Steve and Karen.