Tax Research Analysis

After conducting some research, the Gaytors realized that operating their business as a sole proprietorship poses the risk of personal liability because there is no legal separation between personal and business assets. If they default on business obligations like loans, their creditors may have a right to claim personal assets for payment. In addition, they can also be held personally liable for the negligent acts of themselves or their employees. As their trusted tax advisor, the Gaytors are seeking your advice as to what type of business entities are available (other than Sole Proprietorship). They want to know which business entity type would be the most suitable for their small business considering all the risk factors mentioned above as well as the requirements for accounting, record keeping, and most importantly, the impact of income taxes.

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Write a letter to the Gaytors in which you provide them with the type of business entities available that they may cons

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