In a high-risk industry, the wisest choice of business structure for Sophia and Mia would be a limited partnership. This structure allows them to have some protection against personal liability for business debts and obligations. In a limited partnership, one or more partners can have limited liability (limited partners) while still allowing for active management by one or more general partners. This is advantageous in risky businesses, as it can help protect their personal assets if the business fails.
Choosing a corporation could also provide liability protection, but it comes with more regulatory requirements and complexities. A general partnership or sole proprietorship would expose them more to personal liability, making those options less favorable given the risks involved.