Guiding Entrepreneurs Through the Quagmire of Business Entities—Three Hypothetical Scenarios for Discussion

Selecting the legal form of a business is a critical decision for entrepreneurs. The selection criteria include the costs to form the entity, risks involved in the particular type of business, taxation, and the effect the choice will have on the ability to raise capital. The authors present three hypothetical scenarios, along with online teaching notes, to help instructors lead discussions with their students about this multi-faceted decision. These scenarios provide a foundation for instructors to lead robust discussions among undergraduate and graduate students revolving around the scenarios and the students’ business concepts