Business Plan - MX3 Sports Bar & GrillJamila HowardBUS415 - Business LawApril 6, 2009Business Plan - MX3 Sports Bar & GrillFor this assignment I have chosen the Sports Bar Franchise, the name of my Sports Bar will be MX3 Sports Bar & Grill.
Executive SummaryMX3 Sports Bar and Grill will establish a strong and successful presence in the food and beverage industry. However, owning a franchise is not an overnight endeavor, there are several things to consider when starting a new business. The first two and probably most important decisions to make would be the name of your business (see Exhibit B) and what type of business entity to establish. MX3 Sports Bar and Grill will start out as an LLC.
The Limited Liability Company (LLC)Limited liability company - Abbreviated LLC, is a legal form of business company that provides limited liability to its owners. It has certain characteristics of both a corporation and a partnership.
The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation, it would be treated like a partnership for tax purposes. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
Advantages of the LLCLimited Liability Company's do not require annual meetings and require few ongoing rules and regulations. Owners are protected from personal liability for company debts and obligations and enjoy partnership-style, pass-through taxation.
Disadvantages of the LLCThere are some disadvantages of the LLC that make it an undesirable business entity for some. The limited liability company is a new business entity, and a body of legal precedent governing LLCs have not been developed as of yet by the court system. Therefore, owners of an LLC may be...