With careful consideration and review of the company’s needs, it is my recommendation that Cake Dash proceed with the following business plan. Cake Dash should formally conduct business as an LLC as it has low risk with optimal tax benefits. Future liabilities are outlined for current, long term and estimated liabilities so as to correctly categorize and document them. For its capital expenditure purchases Cake Dash should use the units of production method as it best fits the needs of the anticipated fluctuating nature of the business. Many factors were taken into account when making this determination. These factors include the individual needs of the business in terms of taxes, liabilities, employees, expenses, and nature of the …show more content…
An LLC however allows for the business to be recognized because it requires special paperwork to be filed annually with the state government, in order to operate. Additionally, there is also less risk involved. Cake Dash would be treated as its own separate entity in terms of its debts. This means that if for any reason Cake Dash was unable to meet its financial obligations the owner would not be personally liable for them. The owner would only be held personally liable if a case arose in which the negative action would not have occurred had it not been for the owners’ actions. This would be in cases such as fraudulent or illegal actions taken by the owner, or if the owner pierced the corporate veil and used the company to pay for personal expenses. Aside from these particular situations the owner is able to operate without concern of being personally sued. Given that the owner of Cake Dash is concerned with taxes and liability, an LLC seems like the optimal choice for establishing the business under. Once Cake Dash has set itself up as an LLC it will take on both current and long term liabilities which will need to be correctly accounted for. Current liabilities are obligations that are owed within one year. Since Cake Dash will be employing two employees whom they will pay throughout the year this will
Imagine you are hired by a new start-up company. You are tasked to recognize and explore a new business opportunity of creating a new product or service for your company. As part of your new business vision, you will create a business plan describing all keys elements of the business opportunity which will ultimately be presented to an executive team in a venture capital group for possible funding and execution.
The business plan is intended solely for informational purposes to assist you with a due-diligence investigation of this project. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projects that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are of course, not guaranteed. The contents of this plan are confidential and are not to be reproduced without express written consent.
A contract is formed when an offer by one party is accepted by the other party. The owner of Acme fireworks is trying to get his business off the ground and is attempting to make a contract with larger retailers something his business has never done. A contract does not exist simply because there is an agreement between people. Once you decide to establish a business, a primary consideration is the type of business entity to form. Tax and liability issues, director and ownership concerns, as well as state and federal obligations pertaining to the type of entity should be considered when making your determination. Personal and personnel needs and the needs of your particular type of business should also be considered. Domestic LLCs may be managed by one or more managers or one or more members. In addition to filing the applicable documents with the Secretary of State, an operating agreement among the members as to the affairs of the LLC and the conduct of its business is required. The LLC does not file the operating agreement with the Secretary of State but maintains it at the office where the LLC’s records are kept.
When looking at liability, creating an LLC will limit the owner’s exposure to just his invested amount. This will legally shield his home, bank accounts, family’s property and other personal assets from seizure or liquidation in the event the company is held responsible for any of the situations mentioned, such as a cabinet falling or subcontractor failing to perform. It would also protect him in the event the expansion of his company fails, and a worst case scenario of the company going under.
My dog Peyton has severe allergies , which affected him to not use any store – bought dog treats. Peyton allergic reation to dog treats had inspire me to start my own business to make all natural and hypoallergenic dog treats for any dogs who suffer from severe allergies . “ Peyton Approve “ company was established in 2005 and has been around 10 years with booming sales . To expand my doggy treat business to be moresuccessful, it would be best to open up a dog treat bakery . The only problem that’s holding me back from opening up the bakery is not having enough money . This memo will discuss the importants of why my business is ready to receive it’s own bakery by analyzing the accountant reports to show in numbers of how well my store can handle paying expenses , debts , while operating a business .
reasons why this restaurant is so successful is the fact that people who eat here enjoy the
If you wish to be the trendiest woman of the season, Missy Empire is the place you should be. This store has an extraordinary collection of clothes, shoes and accessories for women who are sick of wearing same old clothes and want to stand out among her kith and kins. This online fashion retailer fetches latest fashion and styles from high-street brands that are simply perfect for various occasions at conveniently low prices.
There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion
A few weeks ago I wanted ice cream but I didn't want to go to the store and buy an entire tub of ice cream I just wanted something like a banana split. The only problem is that belvidere has no ice cream places except Dairy Ripple and they close in the winter,so a thought occurred to me Belvidere needs a Dairy Queen. See Dairy Queen is something that lots of people like so this would make many people happy,and let’s be honest we all have one point in the winter when we want ice cream. Dairy queen has lots of food options,they are very popular and very clean, and they have good prices.
Also, according to break-even analysis operating with the single mold and excluding warehousing costs, a minimum of 12,035 units must be sold to break even. Under a similar situation with the double mold, 15,507 units must be sold to break even, which is about half of the optimistic sales projection. Also under the optimistic sales projection, a positive return on investment is expected. Because the company is turning profit,less additional investment is required. Additionally under the pessimistic and expected situation, the company turns losses, and under the optimistic projections, Chef’s Toolkit only has a net income of 13% of its revenues. Selecting Preferred alternative According to the above information and the projected pro-forma statements, Dale Reid should not invest his money in the company. The company’s lack of current assets, high expenses and low per-unit revenue create an unfortunate and unprofitable investment in pessimistic and expected situations. Only in the optimistic production and sales does the company begin to turn profit, but this profit is low. Chef’s Toolkit needs desperate restructuring and additional revenue sources before Dale Reid should invest. Developing
“Dairy Queen® operators have been providing consumers with crave-satisfying treats and food. Dairy Queen restaurants are independently owned and operated franchised locations that have served customers for over 60 years. The independent franchise operators of Dairy Queen restaurants and their employees, together with American Dairy Queen Corporation (ADQ), strive to provide customers with the best products and service possible”(DQ). Today Dairy Queen boasts over 5,900 restaurants in 24 countries.
........................................................................7 7.0 Financial Plan .........................................................................................................................................7 7.1 Start-up Funding ...........................................................................................................................7 7.2 Important Assumptions ..................................................................................................................8 7.3 Break-even Analysis ......................................................................................................................8 7.4 Projected Profit and Loss ..............................................................................................................9 7.5 Projected Cash Flow....................................................................................................................12 7.6 Projected Balance Sheet .............................................................................................................14 7.7 Business Ratios ...........................................................................................................................15
The McGee Cake Company, currently operating as a sole proprietorship, may benefit from forming a limited liability company (LLC). An LLC is a comparatively new type of business entity. With an LLC there are reduced legal formalities in comparison to setting up a corporation. In addition, unlike a corporation, the McGees could set up an LLC yet remain the sole owners of the company. Another advantage as the owners of an LLC, the McGees are taxable only for personal income and not for the income of your LLC. Therefore, they would not pay double income tax. An LLC also has a long
Five years ago I decided that I at one time would have my own cafe. So today I have saved
| | | | |Assets | | |Non-cash Assets from Start-up |$350,000 | |Cash Requirements from Start-up |$14,600 | |Additional Cash Raised |$0 | |Cash Balance on Starting Date |$14,600 | |Total Assets |$364,600 | | | | | | | |Liabilities and Capital | | | | | |Liabilities | | |Current Borrowing |$0 | |Long-term Liabilities