Project 4: Structuring a New Business Venture

RADIANCE “Brighten the Way to a Greener Future”

HARLAN J. TERRY

Structuring a New Business Venture

UNIVERSITY OF MARYLAND GLOBAL CAMPUS

Author Note: Presentation prepared for MBA 630

Introduction

 Initial Prototype

 Second Gen

 Compact

 Heavy Duty

 Prospects

 Stationary/proximity chargers

Radiance

 Saving the World by going green

 Unbeatable customer service

 Top-quality, innovative, green energy chargers

 Cost Effective products

Mission  Giving everyone the choice of a greener

future by providing the best, cost effective, renewable energy products and services the word over

Vision

 All of us together, can power our lives in a better more responsible way: Let us Brighten the Way to a Greener Future

Possible Legal Forms for Radiance

Corporation Limited Liability Company (LLC)

Limited Liability Partnership

(LLP)

Legal Form Evaluation

 Creation and Maintenance

 Continuity

 Ownership and Control

 Personal Liability

 Compensation and Profit Division

 Taxation

Corporation

 Creation and Maintenance  File Article

 Create Board of Directors

 Maintain detailed records

 Continuity  Must file for dissolution

 Ownership and Control  Shareholder owned

 Director and Officer controlled

 Personal Liability  Shareholder, directors, and managers are protected

 Compensation and Profit Division  Dividends

 Salary

 Taxation  Pass-through tax

 Double tax

Limited Liability Company

 Creation and Maintenance  Article filed with State

 State requirements

 Continuity  LLC is separate entity

 Members dissolve

 Ownership and Control  Members

 Manager-managed or member managed

 Personal Liability  Protected from business torts

 Liable for personal actions

 Compensation and Profit Division  Elected at time of creation

 Salary

 Taxation  Corporation or partnership

 Passive income

Limited Liability Partnership

 Creation and Maintenance  File Application

 State requirements

 Continuity  LLP Agreement

 Loss of Partner

 Ownership and Control  Per LLP Agreement

 Personal Liability  Limited Liability

 State Dependent

 Compensation and Profit Division  Percentage based

 Taxation  Income is taxed

 Self-employment tax

Pros

 Corporation

 Venture capitol firms prefer corporations

 Corporation itself holds liability

 Perpetual sustainability

 LLC

 Personal protection when acting in good faith

 Tax advantages

 No shareholder limit

 LLP

 Management flexibility

 Multiple membership levels

 Liability protection

Cons

 Corporation

 Formalities and protocols

 Double Taxation

 Incorporation is time consuming

 LLC

 Transferability restrictions

 Asset protection

 Limited organization types can create

 LLP

 Special tax considerations

 Binding problems

 Limited recognition

Organization Chart

CEO

Human Resources

Marketing Manager

Sales

Customer Service

Finance

Accounting

Purchasing

Environmental Compliance

Research & Development

Manufacturing

The Best Choice for Radiance

 Corporation

 Best expansion capability

 Functional Structure with CEO

 Elijah Hecal

 Carmen Palombo

 Your Investment

References

Creative Commons (n.d.) Strategic Management: Evaluation and Execution. Retrieved from https://leocontent.umgc.edu/content/umuc/tgs/mba/mba630/2208/learning-resourceli st1/creating-an-organizationalstructure.html?ou=516233

Creative Commons (n.d.) Global Strategy. Retrieved from https://leocontent.umgc.edu/content/umuc/tgs/mba/mba630/2208/learning-resourceli st1/risks-associatedwithoutsourcing.html?ou=516233

Gordon, J. M. (n.d.) Business Law: An Introduction. Retrieved from https://thebusinessprofessor.com/wp-content/uploads/2016/07/Business-Law-An-Intro duction.pdf

Prakash, P. (2020). Types of business entities. Retrieved from https://www.justbusiness.com/legal/business-entity

References

Schooley, S. (2020). Pros and cons of forming a corporation. Retrieved from https://www.businessnewsdaily.com/15805-corporation-advantages-and-disadvant ages.html#:~:text=Advantages%20of%20a%20corporation%20include,formalities%20 and%20protocols%20to%20follow Scott, S. (2019). Limited liability partnership advantages & disadvantages. Retrieved from https://smallbusiness.chron.com/limited-liability-partnership-advantages-disadvanta ges-4429.html

Sutton, G. (2015). Top 12 LLC advantages and disadvantages. Retrieved from https://corporatedirect.com/blog/top-12-llc-advantages-and-disadvantages/

Thoubboron, K. (2018). Advantages and disadvantages of renewable energy. Retrieved from https://news.energysage.com/advantages-and-disadvantages-of-renewable-energy/