Introduction:

USA has various types of entities- C corp, S corp, LLC, Disregarded Entity, Partnership, Sole Proprietorship, etc. with every entity having its own set of pros and cons for different business and goals.

Scenario:

In the given Proof of Work, the founders (name changed) require consultancy on the type of business entity they should go for their business model.

Process:

It is crucial to understand the business model, the goals of the founders, information about potential members/investors, budgets, want of liability, statutory requirements, etc. Based on everything put together, the client is advised entity suitable to them.

Challenge:

Every founder comes with an inclination towards registering a C corp due to ongoing social media trend. 'C corp' sounds more like synonymous to 'registered corporation'.

Solution:

Discussing the advantages and disadvantages of all business entity type helps, while addressing their questions politely. It also helps founders make information-backed decisions.