My overall recommendation for Sarah and Wei is to have a C corporation. The reasoning behind this is
because amusement parks are not good for partnership type business organizations since this would
keep anyone from getting capital in the initiation of the park. A C corporation would help protect the
two with limited liability, and there is no restriction in ownership.
If they do not like the idea of a C corporation, my next thought would be an S corporation. The two are
really similar in keeping limited liability on the two, but differ because C corporations are taxed twice
and S corporations are only taxed once (not on the corporate level). The downside would be there is a
limit of 100 shareholders in S corporations, where C corporations had no limits.
I think no matter what, they should sign a partnership agreement. This would help keep everyone on the
same page while also making sure no one tries to take over or abuse power. This also keeps one partner
from being liable if the other uses the business for something not legal. This doesn’t have to hurt their
friendship, it would just help with initial communication and lay down some ground rules/agreements.