To develop an understanding of forms of small businesses and be able to conduct legal research, business and finance homework help

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Business Finance

Description

Purpose: To develop an understanding of forms of small businesses and be able to conduct legal research to support business formation decisions.

Instructions:

Part A : You are serving as an advisor to a client who would like to change his/her sole proprietorship small business to a Limited Liability Company (LLC). He/she is unsure about the benefits of an LLC. You need to find a way to explain to your friend the benefit of this type of business formation.

You decide to write a short professional memo to explain the benefit of a LLC and show one example of legal case where it could have benefitted the business owner to be an LLC. conducting legal research prepare a well-written one-two page (single-spaced) memo. In drafting your memo, you will need to create a fictitious company you are writing the memo to assist in this business formation change.

Your memo does not require you to fully outline the legal cases you choose, but it should show some fact and finding of each case where relevant.

Be sure to include the following sections in your memo.

  • Explanation of an LLC and the benefits
  • Facts and findings of a legal case regarding an LLC issue
  • Conclusion showing a strong recommendation for the formation of an LLC

Part B: Prepare a short (5 slides) power point presentation explaining the important facts and findings of legal case you select.


Guidelines:

  • Use grammatically correct business writing that is “audience centered, purposeful, persuasive, and economical” (M.E. Guffy & D. Loewy, 2010, p. 50).
  • You cannot use any of the legal cases provided as examples in your textbook.
  • Be sure to cite your sources (if relevant) using APA. Please use the American Psychological Association (APA) format for in-text citations (may not be relevant in this assignment). Instruction for using APA can be found online at https://owl.english.purdue.edu/owl/resource/560/01... (Links to an external site.)Links to an external site..
  • Use Chapter 16 of the textbook for more information and background (i.e. topics and vocabulary), Library Resources_ How to Guide (Module-Resources).
  • Do not plagiarize.

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Explanation & Answer

Attached.

MEMORANDUM
TO: Joe Budden and Sons Co.
FROM: Charles Dickens
DATE: July 24th, 2017
RE: Limited Liability Company
Background
The Limited Liability Company (LLC) is a fused business unit that incorporates various
characteristics of corporations and partnerships while eradicating various demerits of these units.
Over the past years, the District of Columbia and all the states have ratified regulation offering
for the formation of limited liability companies. The Limited Liability Company provides limited
liability to its members just like a corporation. Similar to a Limited Liability Partnership (LLP),
the LLC in the case of taxes is generally regarded as an entity that does not pay tax on its
income. The income is however, forwarded to its limited partners or relevant associates who are
involved in paying tax to the relevant federal, local and state authorities and filing tax returns.
The Limited Liability Company (LLC) has transitioned into a desired type of business
organisation for new or fresh entrepreneurial businesses, corporate joint ventures, family
enterprises, oil and gas investments, high technology and research businesses, start-up
enterprises, real estate investments, investments in theatrical productions, professionals,
commodity pools, management leveraged buyouts, venture capital projects and structured
financial transactions.
How it is formed
A Limited Liability Company (LLC) in the U.S., is fashioned under the legislation and
regulations of a member of the 50 states. Conforming with bureaucracies enacted by each
member state, it is easy for the LLC to possess the right to carry out business activities in either
of the member states, one or more in that case.
Composition
A Limited Liability Company is not obligated to require a management to overlook the operation
of its activities. It can be coordinated by a manager or board of managers or by the members
functioning under the terms of the functioning contract. The managers may be provided with an
oversight of what is required and desired in the functioning agreement. The board could entail
representatives chosen in the routine stated in the functioning agreement and would overlook the
LLC’s performance in a similar manner that a corporate board would oversee ...


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