Limited liability company
Limited liability company The McGee Cake Company In early 2005, Doc and Lyn McGee formed the McGee Cake Company. The company produced a full line of cakes, and its specialties included chess cake*, lemon pound cake, and double-iced, double-chocolate cake. The couple formed the company as an outside interest, and both continued to work at their current jobs. Doc did all the baking, and Lyn handled the marketing and distribution. With good product quality and a sound marketing plan, the company grew rapidly. In early 2010, the company was featured in a widely distributed entrepreneurial magazine. Later that year, the company was featured in Gourmet Desserts, a leading specialty food magazine. After the article appeared in Gourmet Desserts, sales exploded, and the company began receiving orders from all over the world. Because of the increased sales, Doc left his other job, followed shortly by Lyn. The company hired additional workers to meet demand. Unfortunately, the fast growth experienced by the company led to cash flow and capacity problems. The company is currently producing as many cakes as possible with the assets it owns, but demand for its cakes is still growing. Further, the company has been approached by a national supermarket chain with a proposal to put four of its cakes in all of the chain?s stores, and a national restaurant chain has contacted the company about selling McGee cakes in its restaurants. The restaurant would sell the cakes without a brand name. Doc and Lyn have operated the company as a sole proprietorship. They have approached you to help manage and direct the company?s growth. Specifically, they have asked you to answer the following questions. What are the advantages and disadvantages of changing the company organization from a sole proprietorship to an LLC What are the advantages and disadvantages of changing the company organization from a sole proprietorship to a corporation Ultimately, what action would you recommend the company undertake? Why? 1 Page Paper and APA Guidelines ? ? ? ..Answer preview Changing the company organization to LLC will have its own advantages as well as disadvantages. The advantages include limited liability. The owners will not have personal liability for the debts and liabilities of the company. Unlike a sole proprietorship, an LLC debts and legal obligations does not put owners? personal assets at risk. There is also flexibility in the sharing of profits. Profits will be shared according to the owners? capital contribution or the percentage of the ownership interest. It is also easier for an LLC to raise capital compared to a sole proprietorship. This is because it has many venues for raising money. There is also ease of ownership interest transfer unlike in sole proprietorship. Ownership transfer can be done without interfering with the operations of the business.. APA 476 words Related Questions: What are the advantages of and disadvantages of changing the company organization from a sole proprietorship to LLC WA4-factset As noted in WA3, Kyle took your advice and decided not to spend the money to fight
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
