Jimmy Joe Thudpucker and his sister, Linda-Lou Thudpucker are starting a carpet and flooring business here in Winchester

(1) Written partnership agreement has advantages like this provides legal backing. Profits and losses are shared in agreed ratio, court can be approached in case of any conflict, shared risks, specialized opinions, easy to establish.

Disadvantages are legal obligations increases, cases of conflict, individual liability, misdeed by one partner can affect all others.

(2) Benefits of both company and partnership are accrued by Limited liability corporation. Tax benefits, liability is limited, limit on number of members is not there, risk and profits are shared among members.

Disadvantages are tax compliance is through complex process, establishment and closure also involves several legal formalities.

(3) Limited partnership has many advantages such as ease of establishment, liability is limited, profits and risk are shared. Disadvantages involves more legal formalities; Personal liability is held by general partner but not with limited partner.

(4) Traditional corporation has advantages like more capital is pooled, shared responsibility, management efficiency, legal entity. Disadvantages are majority dominated decisions, legal complexities, difficult to shut down.

Therefore, after analyzing the advantages and disadvantages of all four, Jimmy and Linda should start with a partnership agreement which will suit their needs and help them grow. Further they can bring in more partners and investment and also later grow their organization into a company or corporation.