Dexter’s Deli (“Dexter’s”) is a local pet store that specializes in healthy food for dogs and
cats, including fresh, raw, freeze-dried, and other high quality food and natural
supplements. The staff is trained to educate customers on different selections of nutritional
options, which include remarkable choices like, goat milk, CBD (for animals), and
pupcakes, for those special doggo birthday ragers.
Additionally, they offer accessories, toys, and other products, as well as services, like
monthly anesthesia-free dental cleanings for your barker or meower.
Dexter’s is licensed as a general corporation in the state of California, and currently has
three stores in San Diego county.
ADVANTAGES of being a Corporation in CA:
• Separate legal entity – this shields the shareholders from the company’s liable
actions or debt.
• Capital may be raised by selling stocks – to help with business costs.
• “California offers a number of tax credits to corporations to help them grow”
(Mohsen Parsa Law).
DISADVANTAGES of being a Corporation in CA:
• Required to maintain separate books and records – keeps financials separate from
personal liabilities.
• Required to hold shareholder and board meetings – and answer to the Board.
• Double taxation – taxes paid by the corporation and the shareholders.
I learned the difference between two separate business entities, which are LLC and INC.
When I did my search, I found two companies built upon different legal structures, but with
similar types of services in which they offer. One company is Arellano Associates, LLC
and the other TRC Companies, INC. These are two respective companies who offer
professional services to public, private, and government clientele in forms of public
outreach and communications through technology.The main purpose of LLC is to protect its
members from any legal liability for business obligations. The main advantages of LLC is
that it offers an easier route in creating the business than that of a corporation. A LLC is
under the jurisdiction of the state in which it is filed under, and has the benefit of tax
flexibility, wherein they can choose how they are taxed. The LLC further has the flexibility
of creating an agreement in which it defines the roles and responsibilities of its member, or
if no agreement is made, then it can default to the state statutes.Some disadvantages of LLC
include inconsistencies with rules and regulations due to the fact that LLC operates under
state statures. Differences from state to state draws a major disadvantage to any LLC that
operates in multiples states. Another disadvantage in LLC, is that it can become an easy
target of dissolution for a multitude of reasons like failure to meet its obligations, change
within its structure, violating terms with expiration dates and many tax reasons. Any of
these issues can expose the members of any LLC to a high risk of dissolution. I would like
to talk about a business called Total Solutions. This company is a sole proprietorship
business that provides service of dealing with legal document preparation, which is filed
with the court, because they have a bond up to 25,000 which is filed with the city and state,
also have certification of legal work, for example Associate of Science in paralegal studies,
or if you work under an Attorney, you are a paralegal not a Legal Document Assistant
(LDA). Any one can become a LDA if you have the qualification, or you can even buy this
business if interested in. You just need money like other people who purchase a franchise
they you become a co-operator.
The disadvantage of LDA is you must be certified on your own, which means you need to
go to a credible school, as well as get bonded by an insurance company. LDA are not
licensed to give legal advice but can provide work done to another attorney. The advantage
of being a LDA you can put your price on your work, make your own hours and work from
home if you like not even to go into office if you don’t feel like it, let your secretary handle
the office only go in when dealing with clients.
In my words a LDA is a paralegal or were until January 1, 2000. Since then, paralegals
have become LDA not paralegals that is because LDA were taking work from attorneys.
So, with that in mind attorney found a way to charge a sole proprietor to still work as a
legal document assistant if they pay. Its not cheap. This is required to be renewed every
three years. In other words, LDA does all the work an attorney does just can not represent
you in court nor can they give legal advice, but a LDA can charge just like an attorney, but
they don’t because they are there to help the people who cant afford an attorney.
A lawsuit against a corporation is not a lawsuit against the shareholders. For example, if
you buy stock in Ford Motor Company, you as an individual will not be sued if somebody
sues the corporation.
The exception where a shareholder is brought into a suit against a corporation can occur if
the shareholder has behaved in an improper way that blurred the distinction between the
individual and the corporation. That is more likely to happen if an individual is a major
shareholder in a corporation with relatively few shareholders. Wegmans Food Markets, Inc.,
is a corporation, with its headquarters in Rochester, New York. Founded in 1916, Wegmans
is one of the largest private companies in the United States. It belongs to members of the
family of its founder, John Wegman. It owns about 105 supermarkets, which are much
larger than most supermarkets. (Wegmans, 2022). They are usually located in relatively
suburban locations.Since the stock is not publicly traded, the company does not have to
issue the sort of financial reports to the public that a publicly traded corporation would have
to issue. An advantage of the corporate structure is that the individual owners of the
company’s stock are not personally liable for debts of the corporation. Also, since the stock
is not publicly traded, the owners and the company enjoy a certain degree of privacy. It
might be seen as a disadvantage that the company cannot, as it is presently structured,
easily raise money by a public issuance of stock, but the company is probably in such a
good financial position that it would not need to go that route. The first job that I ever had
as a teenager was at Chick-fil-a. I chose this company because for the longest time I had no
idea the type of legal entity that it was, and once I did, consideration was given to joining
their team of Operator's. Chick-fil-a is a Franchise legal entity that is referred to as a quick
service restaurant (QSR). It would more specifically be considered a chain style franchise
company. It is privately owned by a franchisor that allows those that are selected to
Operator's of Chick-fil-a stores throughout the country. These Operators are franchisee's
that pay a joining fee currently of $10,000 to run there own store. There are advantages and
disadvantages to this setup for the franchisee. A big advantage is the ability to join an
already build and successful business model to a their foundation on immediately starting
out. The organization provides training, guidance, land, and construction. While this level
of stability is great to have just starting out, it does come at a cost in excess of the initial
$10,000. As stated on the website, the franchisee must also pay for 15% of sales in addition
to 50% of pre-tax profit remaining. Needless to say that this business model offers great
advantage to the franchisor as the monthly fees that come once the franchisee's store is up
and operational can be significant.
The business I selected today is the Special Financing Company LLC. This business is a
limited liability company. Which means it protects all the personal assets if something were
to happen with the company. An easier way to remember is that LLC’s Is the line between
personal assets and business assets. I think this a smart move for the Special Financing
Company because they are lender. They supply loans and financial services to companies.
When a company or dealer has a client that cannot pay for their services they apply for a
loan. Special Financing funds that dealer the entirety of the loan and the clients pays
Special Financing back.
The Special Financing Company has limited liability when it comes to anything happening
to the company. The owner does not have to worry that if the company fails they will have
to lose their assets. Say the business goes bankrupt the owner will not have to worry about
his house or his car. The LLC is also beneficial with taxes. The profits of the business go to
its members without being taxed by the government on the companies side.
I very big disadvantage to having an LLC is that if one of the managing partners or owners
leave the company will have to be dissolved. The remaining members will have to take on
all legal and financial obligations to end the business. If one member leaves they would
have to start the business over from the ground up.
In Hawaii, small businesses structures have been popular for hundreds of years and have
become essential to our economy. Amongst these small businesses is Mahina Made Hawaii.
Mahina Made Hawaii specializes in designing and selling merchandise that is inspired by
the Native Hawaiian language and art. This entity is legally considered as a small business
structure and is considered to be under a sole proprietorship as it owned and managed by
one individual. Local business licensing is needed however, government approval and
documentation is not .Advantages of being a sole proprietor of a small business structure
include flexibility in the sense that they do not need to answer to partners or executives.
This means that the owner of the business could create content, produce, market, and sell
products whenever she chooses to do so because she would not have to get the approval
from other business executives of the company. Advantages also include easy transfer or
termination of proprietorship, and simplification of personal/business taxes. If the owner
were to decide one day that she wanted to pass her business to a family member or simply
retire, the transfer process would be simple and filing taxes as a sole proprietor only means
paying personal taxes. Disadvantages however include full responsibility and liability of the
business and its finances, as well as the sole proprietor's personal assets if used for personal
funding. This means that the owner would assume 100 percent of liability if something
were to go wrong with the business or if the business does poorly. Also, if the owner were
to use her own personal assets such as her home as collateral for personal funding for her
business, those assets would be affected as well . Most people do not know that
Amazon.com is an Inc and LLC. Amazon.com LLC is a subsidiary of Amazon.com Inc.
“This giant corporation utilizes an LLC structure to optimize its tax
strategies”.Amazon.com LLC has many created subsidiaries like AMB that provides facility
cleaning solutions to various businesses including Amazon.com LLC and Inc. buildings.
Exemplary tax strategies indeed.Amazon.com Inc. has exponential capitalization profit
margins of more than $268 billion in the United States. Amazon.com LLC is an online
retailer and business reseller for individuals and other businesses to sell their items and
display Amazon.com products sale. Amazon.com, e-commerce global dominance is
achieved by being a manufacturer of electronic book readers, Web services provider, and
selling anything and everything by means of websites.There are advantages and
disadvantages of Amazon.com LLC (Inc.) business. The #1 advantage that Amazon.com
has is its branding. Amazon.com has become a trusted online retailer. They have an easy
way to return items for unsatisfied purchases or deliveries. No receipts are required because
the orders are in a member’s profile, and tracking is made easy. Amazon.com has large
capital to be able to invest in societies globally helping to give back to the communities
they operate with. The main disadvantage, I would like to discuss briefly is that
Amazon.com is a business that solely operates from websites and the internet to generate
profits. If the internet (where does the internet come from?) was not able to access for many
global reasons this company would plummet into a volcano of destruction. I am sure
Amazon.com has a master plan and inventive ways of probably offering their own internet
wi-fi hot spots that can emanate from their warehouse fulfilment distribution centres. An
example of this would be certain centres have hydropower specifically to charge their pit
crew machinery. To the future and beyond.
