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Bus 210 Week 2 Essay

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The Executive Angel was setup as a sole proprietorship in the state of Florida. After comparing sole proprietorship versus Limited Liability, the owner decided on sole proprietorship. The reason for setting up The Executive Angel as a sole proprietorship was it had one owner with little assets and profits. Because the company was set up this way there is no legal distinction between the owners profit versus the company. The company is taxed and liable just as if it was an individual.

As The Executive Angel grew over the past few years the owner explored converting the business to a different type entity to protect her from personal liability. In addition, The Executive Angel had done a lot of business with Design on a Dime. The two owners of both companies decided to combine both of their talents and capital to form a partnership under the name The Executive Angel.

As the company experienced massive growth the owners decided to change the company in to a Limited Liability company to further protect themselves. By changing the partnership to an LLC the owners were now protected against any creditors coming at them personally for any outstanding debts. Also by forming the LLC The Executive Angel’s owners had a better outcome financially at tax time.

After years of growth and our profits exceeded 2 million dollars per a year we decided to sell off small shares of our company to investors and become a major corporation. Due to selling company shares, The Executive Angel now became a Joint-Stock

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