You are an entrepreneur. You and a friend develop a new design for in-line skates that improves speed by 25% to 30%. You plan to form a business to manufacture and market the skates. You and your friend want to minimize taxes, but your prime concern is potential lawsuits from individuals who might be injured on these skates.

My friend and I should probably choose to form either a limited liability partnership (LLP) or a limited liability company (LLC).

Explanation:

Both types of businesses are very similar since they both offer liability protection to their owners. Both are also separate entities, that means that they are separate to their owners (resulting in limited liability) and they both need to be registered and authorized by their states.

The main difference between both of them is that a partner in a LLP has the right to participate in the company's management. On the other hand, an LLC can be managed by its owners (similar to LLP) or they can be managed by outside management that do not own the company.

Note - Not considering the country in which the business is being set up

I would be choosing "Limited Liability Partnership" form of organisation as that will minimize the risk of potential lawsuits as well as taxations

The other two forms are:-

Partnership - I would not choose this form of organisation as the liability for the partners are unlimited here hence it will maximize the risk of potential lawsuits.

Private Limited Company - I would not choose this form of organisation as the tax rate for this form of organisations are higher than the rest.