As a Consultant in Financial Services at StarTech, I strongly urge you to reconsider your business model and change the status of Kyle Grocery Stores from your sole proprietorship to an LLC. Not only are there many financial benefits of an LLC over a sole proprietorship, but also many provisions that can protect your business in the short and long run on the legal level. In my pitch for your consideration, I will make sure to put into detail, the exact benefits and how they outweigh the negatives, as well as show legal cases as examples to show how Kyle Groceries can (and should) stay protected and away from any liability in the event that something unfortunate should happen. Benefits of an LLC 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. …show more content…
Each member of a liability is held liable for their own capital contributions, but each member is protected because debts lie within the LLC itself. In a sole proprietorship, you, Mr. Robinson are liable for the whole of Kyle Grocery Stores. I would advise that this is typically dangerous, both in the case of financial losses, and also in the case of a horrific event that may turn into a legal battle, which I will also explain
When you see yourself living out your dream, the thought of what you're most passionate about pulls you in. Passions in one's life change based on what had affected that person. Dreams are defined to change. However, the benefits of these thoughts is that they belong to you and only you. Not one person's opinions matter but your own. Chris McCandless simply was living out his own ideal life, the way he wanted; not to the idea of his parents, his friends or of society. McCandless wanted to escape society and civilization which he felt was tying him down, while also trying to discover himself. McCandless is not by any means a wacko. He was simply defying society and its ideal expectation it holds upon us as a whole.
B) Managers of LLCs are personally liable for the debts, obligations, and liabilities of the LLC.
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.
This allows each owner to protect personal assets from claims and lawsuits against the company. This limits the liability of each owner the amount that he or she has invested in the business. The LLC also has the option to choose your own tax situation. In addition, the ruling does not affect the personal finances of the owner as a sole proprietorship.
Liability: The owner/operator of a Sole Proprietorship is subject to full and unlimited financial liability for the business. The owner and the company are legally the same entity. The company’s assets are legally the same as the owner’s personal assets.
Profit retention – In a partnership profit and losses are shared unless partners agree to
A lot of negative has been coming to light lately about the Brown family from Alaskan Bush People. Radar Online shared the news that Matt Brown was arrested for DUI back in 2013 and the details of his big arrest are now coming out. This family claims to live far away from civilization out in the middle of Alaska, but somehow Matt Brown is ending up at a bar and having a good old time, that turned into trouble in the end.
* Limited Liability - Unlike partnerships and sole proprietorships, corporate shareholders are not liable for any of the corporation's debts.
In 1883, Barney Kroger never could imagine that his $372 investment into his grocery store would turn into such a successful venture (Farfan, 2017). One hundred thirty-seven years later, Kroger stands as a prime example of the American dream as it caters to millions of people across the continental United States. Kroger is poised to enter the next few decades with some uncertainty, but they are no strangers to adversity. They have endured an aggressive “#GROCERIESNOTGUNS” campaign to punish them for allowing open-carry within their stores by deferring to local legislation (Epstein, 2014). In 2008, they reacted to a report by GreenPeace criticizing them for not practicing sustainable practices related to seafood by removing some of their more
Travis has some really good points to support the legitimacy of patent trolls. Adding more to Travis' arguments, the major beneficiaries from lawsuits against high-tech companies are not Patent trolls. The individual patent holders and start-ups gain most out of such lawsuits. There is no second thought that big Multi-National companies have periodically deceived the small patent holders by stealing the intellectual property rights behind the patents. Large companies do not consider violation of patent owner's right as big problem. Most of the time they have resources and legal advisory to look into such affairs. The corporate legal teams can easily con the single patent owners with their expertise.
Replace Prozac with two handfuls of cashews. According to nutritionists we can replace the prescription dose of antidepressants with two handfuls of cashews. Cashews contain tryptophan, and several handfuls of this nut contain at least 1000 milligrams of this ingredient.
In contrast, many people and organizations have argued that Walmart is not holding true to their original sustainable commitments. According to the Institute for Local Self-Reliance, Walmart's greenhouse gas emissions have continued to grow over the last 10 years, and it’s percentage of renewable energy is inadequate compared to other major corporations. Stacy Mitchell, the author of the report and a senior researcher at the Institute believes that the core issue behind Walmart’s lack of action is that they will not change their unsustainable business model to make sustainable advancements. She says that, "Walmart has a highly unsustainable business model, built on shipping goods long distances, selling mountains of very short-lived products,
Limited liability Company (LLC): Business’ owners are only subject to limited liability for company’s debts and actions. Owners will be only liable for their own mistakes or negligence that they may show in occasions.
All you need is money and a realistic vision. 4) Another advantage of a sole proprietorship is that you pay lower taxes. This happens because as you own your own business, the earnings are considered as the owner’s personal income. Because of this, the sole proprietor may be subject to lower taxes than other forms of businesses, such as a partnership or corporation. 5) In addition to all the other advantages listed, another advantage of owning your own business is that you, the owner determines how much you want your firm or company to grow. You decide if you want to stay a small business or expand, whether it be locally or nationally. This can be advantageous because the owner can determine whether it’s better to stay small or grow. If you’re business is successful, you may want to expand to reach more and more clients, helping you make more money and to establish your firm as a successful one. Or you might think that it might be better to stay small and local, because you might not want to take a chance because you might not want to mess with a good thing. Whatever the situation, the owner decides what suites the company.
The advantages to a LLC are: 1) Reduction of personal liability. A sole proprietor has unlimited liability, which can include the potential loss of all personal assets. 2) Taxes. Forming an LLC may mean that more expenses can be considered business expenses and be deducted from the company’s income. 3) Improved credibility. The business may have increased credibility in the business world compared to a sole proprietorship. 4) Ability to attract investment. Corporations, even LLCs, can raise capital through the sale of equity. 5) Continuous life. Sole proprietorships have a limited life,