To: Supervisor.

Added on - 23 Sep 2019

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To: SupervisorFrom: EmployeeRe: Career Institute of America, Inc. (CIA)Date: December 6, 2016Summary of Applicable Facts:The CEO of CIA, is not happy with current business structure of being anonprofit corporation and is looking at a suitable business organization.In consideration to the business objectives, we hereby advise them toform a Limited Liability company (LLC).Issues:The key issues for the business currently relate to the formalitiespertaining to the organization, paperwork and high fee payable, makingit unviable. Since the company is planning to expand its operations, amore flexible business organization is preferred.Law:The General Corporation Law is designed to provide the ease ofcarrying out of business, change the status of the existing business andalso allow change in the business structure. Section 18-101 of theLimited Liability Company Act[ CITATION Sta16 \l 1033 ]provides for thelimited liability company interest as well as provides scope forpermissible indemnification from claims and demands whatsoever.Analysis: Delaware has well-developed, flexible rules in relation to theformation and operation of LLC as stated under the Delawarecorporation law[ CITATION Fox06 \l 1033 ]LLP provides its memberslimited liability as well as flexible taxation, besides providing contractualand management flexibility by making provision for the appointment ofmanagers and supervisors having rights and powers therein.MEMORANDUM-2
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