Select an industry in the U.S. economy, such as a medical practice, an insurance agency, or a supermarket. What type of organization (i.e. corporation, limited partnership, etc.) would be best suited for that industry? Address factors such as ease of formation, ability to raise capital, limits on owner liabilities, and other considerations.
The industry I've selected is a medical practice. In choosing an entity type for a medical practice, the biggest factor we need to take into account is liability. Malpractice, general liability, and other liability concerns are an issue, particularly if the doctors or other professionals are just out of school (and therefore don't have the same degree of experience as others in the profession, where there be a higher chance of mistakes or liability claims). The business type needs to remain as such that the owners will be seen as separate, from a legal standpoint, than the business. That way, if the business does end up in a lawsuit, the owners aren't held responsible, the business is. The best choice would therefore be a Limited Liability Corporation (LLC), probably with tax treatment elected as ...
The solution provides a detailed discussion for the factors to consider when selecting an industry and deciding on the appropriate type of entity that should be formed, including areas of capital, liability. and other considerations.