Case Study: The Gathering Place

In choosing a business form for Tim’s Coffee Shoppe I would choose a Limited Liability Company. Operating as a Limited Liability Company Tim is protected from the issues of dealing with a partner and also the repercussions of his personal assets being attached to his business if he were to be sued. Under the Limited Liability Corporation all his personal assets are protected if the business goes under they cannot go after his home for debt. Working under a single entity LLC: This business is taxed the same as a sole proprietorship. The profits or losses from the business are not taxed directly to the business. But instead the taxed are paid through each single member personal federal tax. Although it will take him longer to turn a profit he will operate the business under his guidelines.

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.

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

Since Shania Jackson is pursuing her first business, a private corporation is a worthy avenue of direction. An initial understanding by Shania that a lack of experience is a commonality of a new business owner must be considered. Inevitably, a multinational corporation is ideal once all the operations of the Christian coffee shop are proven to be efficient, as well as profitable. For example, trial and error will reveal the preferences of variations of coffee together with numerous toppings for the coffee purchased by Colorado residents. In addition, Shania might consider pastries to accompany the coffee. However, the coffee preferences of the Colorado population may vary by a landscape compared to coffee drinkers in Germany. For these

The partners of Beyond the Bean want to combine a traditional coffee shop with table/ board game rentals, where customers can socialize, in a relaxing environment. Our case analysis will demonstrate the appropriate decisions Beyond the Bean should apply to their business plan in order to achieve their goals.  The report clearly identifies the problems within the case, and what choices the business should make to in order to be successful in the given area during a time of rescission. We explore the strengths, weaknesses, opportunities, and threats of Beyond the Bean’s business structure, identifying vital decisions that the business should

When choosing a business structure, it is important to understand the kind of liability that you might face. For example, in the case of Jeb and Josh their business venture is very risky, they should choose a business form that minimizes any potential personal liability. I think that a limited liability company (LLC) allows them the maximum protection for their personal assets without the formalities of corporate bylaws, directors and shareholders.

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.

The first and most notable benefit of an LLC over a Sole Proprietorship are potentially the tax benefits. Even though you are the sole owner of Kyle Grocery Stores, you have many managers and investors that are accumulating a steady amount of wages as a result of the companies increasing revenues and reducing of costs. However, all of the company's revenues are still yours and still go on your tax return. However, as a member of an LLC, each one your managers and you can report on your own individual tax returns provided the LLC agreement be set up the right way.

Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need

Income taxes: With an LLC our members have the most flexibility for taxation; our company can choose the form of taxation that best suits our member needs

1. In the eyes of the federal government, an LLC is not a separate tax entity,

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Concern. Marvin, Shania’s husband, is willing to invest capital to start the business. Moreover, he does not desire to have control or an interest in its operation and management. This implication suggests that Shania could have all controlling interest in her business. Moreover, her coffeehouse could be considered a small business. Based upon these fact and the aforementioned business structures, the best structure that could suit her business needs is the limited liability company (LLC).