Problem: Rosita Dominguez has been operating her bakery, Rosita's Bakery, as a sole proprietorship for three years out of her house. She takes all orders by phone or from her website. She has all the necessary licenses to run this business. In the last year, business has tripled. She is quickly outgrowing her tiny kitchen and can't make the deliveries fast enough. Rosita has looked at renting a larger space with a small store front for customers to come in and order and sell a few items. She is also looking to hire drivers to help make deliveries. She has concerns about having a physical store, employees/drivers, taxes, and liability. Rosita needs some advice.
a. As a small but growing business, what are the different types of business that Rosita should consider?
b. What type of business entity would you recommend for Rosita? Why?