Business Law I (MGMT235 -1602A -02)
Instructor: Leslie Cooper-Blood
Unit 4- Business Organizations & Regulation
April , 2016
Introduction of Proposed Business
With the increase in demand for healthier alternatives than processed foods, I am happy to announce the opening of The Dirt Patch, LLC in Indiana. During this new and exciting time, my partners Robert Peters, Larry and Vicky Reynolds and I, Amanda Kranning, plan to open a year round produce market providing locally grown and organic foods for our community. Within our rural area, we have obtained 1 acre of land to which we will set up a bricks and motor vegetable store. We aim to grow spring and summer vegetables on the land while continuing them in a…show more content… The Business Entity
A Limited Liability Company (LLC), as the name states, has the ability in keeping your liability limited as a professional owner. This is fundamental in protecting your personal assets by separating them from your business assets. In choosing to run a LLC company, we have agreed that a manager-managed business would be conducive to our field of industry. Although one person will have the authority in overseeing the daily tasks of running the business, all non-managing members will still have an input in all decisions in regards to the enterprise. Contract negotiations and employment are just a few of the joint duties of all members. Running an LLC has many advantages like flexibility, limited liability in business related debts, pass-through taxes, and reliability standing. However, with perks there are always some downfalls, such disadvantages consists of being subjected to self-employment tax or if a member departs the LLC ceases to exist, although an Operating Agreement can reverse this challenge. As you can see, running an LLC has more pros, out weighing the cons of such companies.
When starting an LLC in the state of Indiana, there are six steps to ensure that your business is legally ready to operate within the guidelines. As per Indiana Code 23-18-2-41, a company must: (IN.gov, 2015).
1. Choose a Name for Your LLC
Under Indiana law, an LLC name must contain as the last words, "Limited Liability