Running head: Acme Fireworks 1
The Case for Acme Fireworks
BUS 311 Week 5 Assignment
Ashford University
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https://www.coursehero.com/file/27539331/BUS-311-Week-5-Final-Paperdocx/
, Acme Fireworks 2
The Case for Acme Fireworks
Introduction
There are several specifics to consider when starting or restructuring a business that help
determine which is the best business structure to choose. While a Sole Proprietorship may be the
simplest way to start a business, we as a company have simply out grown it. Acme Fireworks
would benefit immensely to be restructured as a Limited Liability Company or LLC. Due to the
influx of larger business contracts and needing more employees an LLC would offer more types
of employment, liability risks and tax advantages. In this case we are opening ourselves up to
personal liabilities and selling ourselves short when it comes to the advantages that a Limited
Liability Company can offer us.
Governed Contracts
With the possibility that businesses inquiring contracts could be from another state, the
Uniform Commercial Code or UCC would allow certain transactions to be made, where common
law may differ in taxation and legal sales. Fireworks are not legal to purchase in all states nor
are they legal to set off in all states.
Since we at Acme operate under a sole proprietorship, we can both offer and accept
contracts. Acme Fireworks has received requests from larger corporations, so contracts will need
to be established before services and sales can be rendered. Sales of goods for exchange are
governed by the Uniform Commercial Code, according to the UCC fireworks can be sold as long
as the buyer is using them in an area that is legal to display fireworks, not all states have legal
areas.
This study source was downloaded by 100000842568006 from CourseHero.com on 04-27-2022 14:33:22 GMT -05:00
https://www.coursehero.com/file/27539331/BUS-311-Week-5-Final-Paperdocx/
The Case for Acme Fireworks
BUS 311 Week 5 Assignment
Ashford University
This study source was downloaded by 100000842568006 from CourseHero.com on 04-27-2022 14:33:22 GMT -05:00
https://www.coursehero.com/file/27539331/BUS-311-Week-5-Final-Paperdocx/
, Acme Fireworks 2
The Case for Acme Fireworks
Introduction
There are several specifics to consider when starting or restructuring a business that help
determine which is the best business structure to choose. While a Sole Proprietorship may be the
simplest way to start a business, we as a company have simply out grown it. Acme Fireworks
would benefit immensely to be restructured as a Limited Liability Company or LLC. Due to the
influx of larger business contracts and needing more employees an LLC would offer more types
of employment, liability risks and tax advantages. In this case we are opening ourselves up to
personal liabilities and selling ourselves short when it comes to the advantages that a Limited
Liability Company can offer us.
Governed Contracts
With the possibility that businesses inquiring contracts could be from another state, the
Uniform Commercial Code or UCC would allow certain transactions to be made, where common
law may differ in taxation and legal sales. Fireworks are not legal to purchase in all states nor
are they legal to set off in all states.
Since we at Acme operate under a sole proprietorship, we can both offer and accept
contracts. Acme Fireworks has received requests from larger corporations, so contracts will need
to be established before services and sales can be rendered. Sales of goods for exchange are
governed by the Uniform Commercial Code, according to the UCC fireworks can be sold as long
as the buyer is using them in an area that is legal to display fireworks, not all states have legal
areas.
This study source was downloaded by 100000842568006 from CourseHero.com on 04-27-2022 14:33:22 GMT -05:00
https://www.coursehero.com/file/27539331/BUS-311-Week-5-Final-Paperdocx/
