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Suitable Business Organization for Career Institute of America

   

Added on  2019-09-23

3 Pages719 Words134 Views
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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 a nonprofit corporation and is looking at a suitable business organization. In consideration to the business objectives, we hereby advise them to form a Limited Liability company (LLC). Issues:The key issues for the business currently relate to the formalities pertaining to the organization, paperwork and high fee payable, making it unviable. Since the company is planning to expand its operations, a more flexible business organization is preferred. Law: The General Corporation Law is designed to provide the ease of carrying out of business, change the status of the existing business and also allow change in the business structure. Section 18-101 of the Limited Liability Company Act [ CITATION Sta16 \l 1033 ]provides for the limited liability company interest as well as provides scope for permissible indemnification from claims and demands whatsoever. Analysis: Delaware has well-developed, flexible rules in relation to the formation and operation of LLC as stated under the Delaware corporation law [ CITATION Fox06 \l 1033 ] LLP provides its members limited liability as well as flexible taxation, besides providing contractual and management flexibility by making provision for the appointment of managers and supervisors having rights and powers therein. MEMORANDUM-2
Suitable Business Organization for Career Institute of America_1

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