Making An Amazing Pastry Shop - 1190 Words

Chris, I applauded you for creating an amazing pastry shop that has brought mouthwatering joy to south-central Wisconsin residents over the years. Your perseverance in creating this masterpiece, Cupcakes-Palooza, is unrivaled in your industry. For this reason, you truly exemplify the spirit of the entrepreneur. In the beginning, your idea of treating the community of Janesville with delightful cupcakes required self-discipline, grit, and determination. Therefore, you ventured forth and created a sole proprietorship, the simplest and easiest business structure there is. While the sole proprietorship has its advantages, such as individual control of all business decisions and lower tax rates compared to corporations, it also presents the†¦show more content†¦That is to say, if your company ends up on the losing end of a court judgment or incurs debt, the company pays, not you. Thus, your personal belongings, such as your boat and lake house are not touched because of the limited liability protection. Since this is a limited liability; any wrongful acts committed by you, stakeholders, and your employees could require you to be personally responsible. However, I would not let the possibility of any wrongdoings committed by the company, stakeholders, or employees discourage you from reading more on an LLC. In fact, you will learn some advantages that make this type of venture appealing. For instance, you may continue to be the sole owner of the company if you choose or you could have family and friends invest in the company as limited partners. By doing this, you and the members can elect who will be in charge of performing certain tasks, such as overseeing day-to-day operations. Furthermore, you and the members decide how profits and losses are shared amongst one another. The percentage may be based on capital invested by each member or a mutual agreement. Whichever route you choose, make sure you have it in writing before proceeding. Compared to the sole proprietorship, the LLC offers the advantage of raising additional capital to fund projects. Since you have new partners that just invested in the business you just