Lit Task B

M E M O R A N D U M

TO: Mr. Wood

FROM: Greg Doe

RE: Changing business organization type

DATE: March 4, 2012

___________________________________________________

By analyzing your books and keeping your concerns in mind, I have decided that the best type of organization for your company is a LLC. It as simple as a sole proprietorship and has the liability benefits of a corporation.

A LLC has very limited liability, the members of the LLC will only be liable for their investment into the company. This will cut out any worries of loosing your personal finances/assets.

One of the best benefits of becoming a LLC is that you will be taxed in the same manner as a sole proprietor, partnership or a corporation. Each member of the LLC will get the amount of profit percentage that is decided by the member’s agreement at the time of memberships creation. Depending on how the style your company is running will be how the tax regulations will tax you. When adding a factory in an adjoining state make sure you file the proper paper work and a foreign qualification.

The last major reason that becoming a LLC is that of transferring your part as a member to another person is allowable. I know you were talking about maybe expanding and adding family into your organization and being a LLC will accommodate that.

It has been a pleasure working with you and reviewing your business. I know that you have many concerns in what to do with your company and I hope I have helped you see the perfect choice in your new adventure of business style. If you have any questions at all please feel free to contact me.

Greg Doe

(313)645-8878

gsp@easylaw.com[->0]

[->0] - mailto:psmith@mmmlaw.com