Three friends have just graduated, each with a B

There are three types of business organizations, namely: sole proprietorship, partnership, and corporation. Depending on the nature of the activities to be provided, any one of them could be suitable.

In the case of the three friends, here is how I would advise:

For the one with the restaurant, I would recommend a sole proprietorship since a restaurant is a relatively small entity that does not require a lot of critical day to day decision making. He would be in charge of the entire business and would make all the decisions when the need arose.

I would recommend a corporation for the one who wants to be a subcontractor in a building trade. The main reason for this is that a business like that would need to be detached from the individual since he would probably get to a point where he would try to seek funds from investors for other projects. By allowing the business to be independent, it would have the ability to borrow and enter contractual agreements with third parties.

The other friend would need to form a partnership since that kind of structure would help him and his friends to work together. It is easy to establish, and it would give him liability protection in case one of the partners was sued since the company would have its own identity.

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