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Duke Used Car Dealer - Assignment Example

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Duke Used Car Dealer Name Instructor Task Date Duke Used Car Dealer 1. Duke should integrate as this will allow him to do his activities without worrying that he might lose his home, car or personal savings because of a business liability (HG, 2012). 2. Duke needs to come up with a business plan…
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Duke Used Car Dealer
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Download file to see previous pages The Executive Summary has to be persuasive, easily readable and at least two to four pages. The second is company analysis; this section provides a strategic overview of the company and describes how the company is organized, what products and services it offers or will offer, and goes into further detail on the company's unique qualifications in serving its target markets. Third is industry analysis; This section evaluates the playing field in which the company will be competing and includes well-structured answers to key market research questions such as the following: What are the sizes of the target market segments? What are the trends for the industry as a whole? With what other industries do your services compete? Fourth is analysis of customers; the Customer Analysis section assesses the customer segment(s) that the company serves. In this segment, the company has to express the desires of its objective clienteles. It then has to show in what way its merchandises and services gratify these desires to a degree that the client will recompense for them. The fifth and last is Analysis of Competition; this section defines the competitive landscape of your business. It detects who the direct and unforeseen opponents are, evaluates their abilities and flaws and outlines the company's competitive leads. 3. A major factor that differentiates an S corporation from an LLC is the employment tax that is paid on earnings (Chrissie 2011). The whole net income of the business is conditional on self-employment tax. In an S corporation, just the wage remunerated to the employee-owner is open to employment levy. The residual income that is remunerated as a supply is not under the employment levy in IRS guidelines. Consequently, there is the probability to attain considerable employment levy savings. In addition, when it comes to operation control, S corporations have board of directors while LLC may be member-managed or manager-managed. In terms of flexibility or simplicity of operation, LLC is easier but S corporation are subject to some formalities and record keeping rules like traditional C corporations. 4. There are advantages and disadvantages of purchasing a permit. According to Matthew (2008), a new charter can be a part of what you are, as compared to an identity and system that is old and established and so inflexible. A new franchise suggests a chance to be innovative and relevant to the present. It will be exciting and a challenge. 5. The positive aspects, as explained by Justyn (2012), of buying an existing business include positive cash flow, an established client base and an established brand. Negative aspects for buying an established business comprise the potential for old equipment and potentially having to fire a number of employees. 6. Duke could be suggested for an LLC that has s corporation characteristics, that is, the levy treatment of an S corporation. But like the simplicity of an LLC, there is an alternative worth considering; forming an LLC that is taxed as an S corp. An LLC may make a special balloting with the IRS to be levied as an S corp. This election is made on IRS Form 2553 and has to be cased with the IRS earlier than the 16th day of the third month of the tax year in which ...Download file to see next pagesRead More
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