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Tim and Sara are business school graduates

Accounting

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Tim and Sara are business school graduates. They want to start an accounting firm together. They trust each other, both are CPAs now, and are confident that they will be great accountants as a team. They both have $2,000.00 to invest in the business, and neither has any significant personal assets. They aren't sure how to form their business association, and they visit the attorney that you work for to learn about their options. Your attorney tells you that she will recommend that they form an LLP, an LLC, or a corporation.

* What form would you recommend and why? In answering this question, discuss the liability issues and tax ramifications of your choice.