Project: Business Formations

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Purpose: To develop an understanding of forms of small businesses formation decisions.

Instructions:

Part A (Worth 100 Points): You are serving as an advisor to a client who would like to change his/her sole proprietorship small business to a Limited Liability Company (LLC) or Corporation. He/she is unsure about the benefits of an LLC or Corporation. You need to find a way to explain to your friend the benefit of this type of business formation.

You decide to write a short professional memo to explain the benefit of a LLC or corporation. Prepare a well-written one-two page (single-spaced) memo. In drafting your memo, you will need to create a fictitious company you are writing the memo to assist in this business formation change.

Be sure to include the following sections in your memo.

  • Explanation of an LLC or Corporation (see chapter 21-22)
  • Conclusion showing a strong recommendation for the formation of an LLC or Corporation.

Guidelines:

  • Use grammatically correct business writing that is “audience centered, purposeful, persuasive, and economical” (M.E. Guffy & D. Loewy, 2010, p. 50).
  • Be sure to cite your sources (if relevant) using APA. Please use the American Psychological Association (APA) format for in-text citations (may not be relevant in this assignment). Instruction for using APA can be found online athttps://owl.english.purdue.edu/owl/resource/560/01… (Links to an external site.)Links to an external site..
  • Do not plagiarize.

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