SDSU Limited Partnership Discussion

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Sarah and Rolfe are excited about starting a business together! They want to start manufacturing unique pieces of furniture and selling them locally and then expand nationwide. Sarah is single and plans on working on growing the business 24/7. She currently rents an apartment, drives a used car and only has about $1,000 in her bank account. Rolfe is married and works full-time for Amazon in customer service and his partner works as an emergency room nurse. Rolfe can only devote about 10 hours a week to the business. He and his partner make about $180,000 per year combined, own a home and have about $50,000 saved in their bank account. Currently, they are planning on having children in the near future.

Based on the above facts, if Sarah and Rolfe want to create a formal business entity, what type should it be? Explain why, based on what you’ve learned from your reading and the facts listed above. You can include any assumptions as some facts may be missing that you would want to know, but please state what assumptions you’ve made in your answer. (answer must be a minimum of 10 sentences)

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