Introduction
The legal structure of a business has a huge influence on the managerial/regulatory requirements and other strategic variables, which in turn impacts the bottom line. A proper choice of the legal structure must take into consideration capitalization, profit and loss allocation, applicable tax regimes, compensation, ownership restrictions, desired managerial control, setup and running costs and the expected future of the business (Hertz, Beasley, & White, 2009). Unfortunately, many business owners fail to appreciate the strategic importance of the legal structure or are simply unable to reconcile the determinant variables. This in turn forces owners to work under restrictive or costly form, ...