Reference no: EM133073848

PART 1

Limited Liability Companies [NACE: 1, 2, 3, 5, 6, 8]

My goal is to have a nonprofit consulting firm that advises, creates financial goals, aid with fundraising, helps organizations grow, creates a plan for expansion for unique products, aid in the development of nonprofits, or assists with creating solutions for any issues nonprofits might be facing. I want to hire recent graduates and veterans to help develop their work experience. I haven't officially started the business because I am not sure if I want it to be for-profit or not-for-profit.

Comparison of LLC with A C corporation And with An S Corporation

A C-Corporation is intended for companies that raise substantial amounts of money (Taulli, 2016). While an S- Corporation is intended for small companies and the income and many tax deductions, credits, and losses are passed through to the owners, rather than being taxed at the corporate level (Taulli, 2016). While a single-member LLC, preparing a tax return is easy because I can file a Schedule SE for self-employment taxes and a Schedule C to detail the revenues and deductions (Taulli, 2016). In comparison, corporate businesses have more of a formal structure with a board and stockholders if desired.

My Organizational Form Business

My objectives for my business are to help improve nonprofit organizations' management to increase their community impact and help lunch careers. I don't want a large business, and it's more of an opportunity to coach, mentor, and develop. I believe an LLC would be better because most people consider that only the assets owned in the name of the LLC are subject to the claims of business creditors, including lawsuits against the business's vital reason to form an LLC (Seaquist, 2012). While S corporation owners can opt to receive both salary and dividend payments from the corporation, the LLC would allow me to pass along the company's assets as part of my Estate Planning (Seaquist, 2012).

References

Seaquist, G. (2012). Business law for managers (1st ed.). Zovio Inc.

Taulli, T. (2016, July 24). When To Form An LLC (Limited Liability Company). Forbes. 

PART 2

US companies should absolutely be culpable for materials that go in their products. They are legally obligated through the Duty of Care clause perform their due diligence customers or people in general from harm over their products including drugs or regular consumer products (South Carolina Lawyers Weekly). This may case a delay in imports and raise the costs to ensure materials are not hazardous. The upside is a safe quality product, but the downside is increased costs along with latency in shipping which could drive away customers.

To adjust accountability, there will need to be outside party testing. Internal testing is cheaper but raises too many questions as far as unbiased and skewed results. Some results may not be line with expected results so those findings may be withheld again causing a liability issue. Using credible test methods would strengthen the credibility of product leading customers to trust a brand or company. When a brand has established itself, customer bases tend to be very consistent without them turning to other brands. If there is negligence, then a brand is tarnished for a long period of time. It takes a valiant effort to win that trust back.

There is a front-loaded cost to be the dominant company in an already crowded business world. Testing, trial runs, marketing, possible and probable delays could potentially sink a business before it can fully establish and flourish. Corporate responsibility becomes more and more compromised to rapidly profits sometimes at the cost of credibility and quality. The consumer does ultimately drive the success of a business. It does ask the questions: At what cost? Quality vs profit? Does Duty of Care go out the window?

Reference

S.C. Lawyers Weekly staff. (n.d.). Tort/Negligence Duty of Care Certified Question Drug Testing Company Labor & Employment. South Carolina Lawyers Weekly.