Assignment 1- Business Organizations
Form of business: Limited Liability Company
Product: Custom wedding dress & wedding consulting services
Name: Von Gannon
It would be in my recommendation that the business functions as a Limited Liability Company with our own formal contract stipulating a 60%/ 40% breakdown, due to the amount of start-up investment money contributed. My brother, Shawn, will collect a high commission on the accounts he establishes with a small “base”, and I will collect what could equate to a mid-level salary. Most of the day-to-day business operations will be run through me as the VP of Operations, with the help of an Executive Assistant. We will staff a part-time accountant handling all of the payroll & AP/AR duties. Shawn will work as an Account Executive responsible for generating new accounts, in addition to the other three Account Executives. We will also have three in-house designers and five contract seamstresses who will work closely with the designers. On the consulting side there will be three event planners & four event coordinators. The event planners will also work hand-in-hand with the four Account Executives bringing in new accounts and generating revenue.
I have chosen Limited Liability Company as my form of business for the following reasons.
The Limited Liability Company
LLC's have the benefit of operating under the liability protection of a corporation. Although an LLC operates under the same protection as a corporation, it exists as a separate entity. No one person can be held personally responsible for the debts unless they have decided to personally guarantee it. Unlike limited partnerships, there are no restrictions on active participation from any party involved. Each owner can manage the business without jeopardizing their protection. There can be multiple owners or members, and there is a managing member that reaps the rewards of a limited liability because they are responsible for the...