Another aspect to consider is the acquisition of legal rights and liabilities connected with the business. The following questions should be asked:
Who is entitled to profits made by the business? How will the profits be shared?
Who will be liable for business debts and other obligations, and to what extent?
How will the business profits be taxed? Will they be taxed as part of the personal income of the owners?
To what extent is privacy or confidentiality an issue?
Would it be an advantage for the business to have a legal identity that is separate from that of its owners? For example, would it be an advantage for the business itself to be able to acquire and own property, or enter into contracts, rather than the owners doing these things in their personal capacity?