Bears Are Us Organizational Structure
Bears Are Us Paul and Pete have been life-long friends who attended college together studying wildlife biology. After they graduated from college, they both took salaried positions within the U.S. Forest Service. During this time, they decided to dedicate their spare time to understanding and appreciating the protection of grizzly bears. Paul and Pete have formed a recognized partnership, by doing business under the fictitious name of “Bears Are Us”. Although they lack written documentation, the joint management of the organization involves collecting donations, conducting presentations, selling books and prints, writing articles, and actively promoting other events related to the protection and benefit of the grizzly bear. After Paul and …show more content…
“An LLC is an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships and corporations. An LLC may elect to be taxed as a partnership, the owners can manage the business, and the owners have limited liability” (Cheesman, 2006, p. 382). This structure would protect the liability risks and the interest to Pete and Paul. In order for Pete and Paul to form an LLC in the state of Colorado, they will need to file a formal article of organization with the Colorado Secretary of State which will be governed according to Colorado State law. In Colorado, every LLC must also appoint a Registered Agent. A Registered Agent is, “an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued” (Fishman). “Bears Are Us” as an LLC, “will not be taxed at the entity level, but its income or losses ‘flow through’ to the members’ individual income tax returns” (Cheesman, 2006, p. 383). According to the structure of the LLC, the members cannot usually be held liable for the debts or liability of the LLC and are liable only up to the sum of their capital investment in the company. “This protection is typically referred to as the ‘corporate veil’ or ‘corporate shield’” (Scrofano). Under the LLC code, “Bears Are Us” will realize every benefit of the informal structure of the partnership, but will be better shielded from liability. The company may further benefit from the formally organized and publicly recognized status of the limited liability company
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