B4C Technologies Case Study
In the business world, there are many forms for creating an enterprise. Some of the most common forms of legal structure seen out there are a sole proprietorship, a partnership, a limited liability corporation and a corporation which is also known as a C corp. Depending on the business to be set up, an owner must choose wisely to maximize his/her benefit during their business venture. There are advantages and disadvantages to each one of these forms and an owner must due his/her due diligence when selecting one. In this paper, the writer will discuss which business form would be best in the case of B4C Technologies. Business Form For B4C Technologies B4C Technologies is currently a privately owned metal diffusion company located in Palm …show more content…
First off, B4C Technologies has a need to raise capital in the form of investors of private investors. The need to raise money is to support the unbelievable amount of demand that has emerged after the entire comparative testing against legacy coatings was conducted with positive results. The product is a disruptive technology that will change the industry standard and for that, a major financial and political backing is needed. A corporation will allow this to happen. A corporation is an entirely separate legal entity from its owners and shareholders. That means that in situations such as the company being sued or the corporation owing debts, the owners and shareholders cannot be sued or held personally liable for the debts (Editors, A 2011). The only risk to the shareholders is their equity within the …show more content…
This means that the shareholders have a vested interest in this process. The board can divide its authority to the business 's officers. When a company is not incorporated, the structure of power and delegated authority are not defined, therefore the company could be subject to a form of manipulation by an employee or co-owner. Having a lack of structure leaves the business at risk, and taking away this risk through the form of incorporating is beneficial to B4C Technologies. The last thing to identify in incorporating is the potential tax advantage. By incorporating B4C Technologies, it offers a wide array of tax deductions for potential operating costs. This should substantially cut back on the overall tax liabilities. The deductions offered include things like employee wages, insurance cost, travel, production, material and entertainment
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