Develop Written Legal Business Plan
This document should be approximately 10 pages in length, double spaced, one-inch margins, excluding charts and exhibits. Please make sure all sources are properly cited using APA style. The document should cover the following legal aspects:
- Law Firm number and group members
- Capital structure (meaning, who contributes the equity and how much)
- Management of the business, decision making, and operation of the business,
- Sharing of profits/losses
- Liability: What liabilities will the business and the owners have if they get sued? How and where would they defend any legal actions?
- Transferability of interests
- Assess the level of competition and profit opportunities
- Employment issues. Who is going to work the business? Does the business have employees or independent contractors? Is the company obligated to provide benefits? Does the company need an employment manual?
- Licensing and regulations: Identify what licensing and regulatory requirements impact your business and how you are addressing them.
- Contractual questions to consider:
- Dispute resolution
- Choice of law/forum
- Release of liability
Please use the below information as reference for the business plan.
We decided to make our life coaching company an LLC and it was created by six members, all of which own an equal percentage (about 16%) of it. All six members will contribute $50,000 in order to have enough to pay the company’s start-up costs, totaling $300,000. The target of potential patients is directed both individually and group in case of offering our service to companies. To open our company, we will use $150,000 and the remaining 50% will be used at the time we decide to implement new information technologies, to maintain a stable platform, dynamic and attractive to users. Due to the type of company in which we have decided to invest, we think that our project does not need other investors or bank loans.
Management of the business, decision making, and operation of the business
We have decided to make our LLC managed by all the members. Because we are starting, our resources are limited and we chose to have every member contribute to managing the business. Every member will have authority when it comes to everyday operations and decision-making. As the business grows, we do plan on delegating management to those who are proactive and want to take on the role. All decisions will be made by taking the majority of votes, and in our case we would need four to make and approve a decision. Decision-making in the company at the administrative level within the legal department is what has to do with the supervision of human talent, monitoring of productivity rates, control of working hours, management of billing processes and collection, among others. Work teams are made up of different types of roles and professional profiles. All of them essential for the correct execution of tasks and the proper functioning of the company:
– EXECUTIVE DIRECTOR
– DIRECTOR OF OPERATIONS
– MARKETING DIRECTOR
Sharing of profits/losses
All profits and losses will be distributed between the members equally in the beginning in order to keep fairness. When we say in the beginning, we are accounting for each member’s future performance in running the company and leaving room for individual growth and healthy competition in which every member motivates the other. Included below is a graphic representation of the allocation of all profits and losses: Table No.01:rofit and Loss Allocation
(What liabilities will the business and the owners have if they get sued? How and where would they defend any legal actions?)
An LLC, like other corporations, can have a duration that is indefinite. That being said, it would not be wise to have a fixed duration. We chose to set an indefinite duration to our business because it can continue to go on even if one or more of the members are not able to run it anymore. When it comes to a corporation, having an indefinite duration indicates that it will remain in business until it is either dissolved, acquired by another company, or gone out of business. Having this duration not only benefits us, but also our clients in the long run.