Limited Liability Company Business Analysis

RallyGirlRacing.com will begin as a sole proprietorship for the first year of its existence. During the first year, the company will work on the logo and art work for the company to use on T-shirts and stickers which will later be sold online and at rally racing events. Once the company develops adequate inventories of digital art work and design, we will transition these offerings to our social media and website areas. During the timeframe this happens, the company will transition into a Limited Liability Company (LLC).

Costs Involved. The cost in the beginning of starting out as a sole proprietorship will be $220 for the filing of Doing Business Under an Assumed Name (DBA) and the cost break down to $50 state fee, $75 filing fee, and

$95 publication fee. Once the company transitions into LLC, the cost will be $200 which is $125 state fee and $75 filing fee. Another cost will be the filing of the operating agreement within the structure of the LLC. This documents the percentage of member’s ownership, voting rights and responsibilities, powers and duties of members and managers, distribution of profits and losses, holding meetings, and buyout and buy-sell rules (D, 2013).
Advantages.

As SBA.gov points out, because you and your business are one and the same, the business itself is not taxed separately, the sole proprietorship income is your income (Sole Proprietorship, n.d.). Because the company does not for see large profits during the first year and they will be off set with expenses creates an advantage for us. In addition to this, there are low to no costs for creating a sole proprietorship other than the DBA filing fee. Since our booking keeping will already be setup for a sole proprietorship it will not be difficult to transfer the company to a LLC. Once the company transitions into the LLC, our personal liability will be removed. As the company grows over time with the LLC, it will be easier to add new shareholders or partners on since there are no limits within a

LLC.
Disadvantages. When starting out as a sole proprietorship, the company will be fully liable for all personal debts and self-employment taxes incurred. Another issue with the sole proprietorship is that the business’s ability to survive is dependent on the owner; therefore, the death or capacitation of the owner can be catastrophic for the business if the owner does not transfer ownership through a will (Allen, 2012, p. 262).
For a LLC, the disadvantages are dealing with the self-employment tax and confirming the going concern of the organization once a member leaves the company.
Social Responsibility
A socially responsibility company operates in a way that exceeds the ethical, legal, commercial, and public expectations that society has of the business (Allen, 2012, p.

289). RallyGirlRacing.com will utilize only manufactures within the United States. Along with this, we will make every attempt to ensure that all materials are sourced within the United States too. Because we are stewards of this great world, the company will not waste any resources by having all T-shirts sold constructed as an on-demand item. This helps reduce the waste in the world from not over producing product that has no demand. In addition to this, the company will donate 10% of gross profits to local churches throughout the country that will be able to use the funds to further their outreach and assistance to those in

need.
Vision Statement
To be the world’s provider of socially responsible resourced women’s apparel and racing gear for the rally and motor sports community.
Mission Statement
Inspiring and empowering women to be successful in the rally world of motor sports.
Core Values of Business
To give back to our community
Further our love of racing
Show God’s love through outreach
Build a world wide brand
Make friends and memories
Offer beautiful merchandise
Biblical Concepts
One reason for this company is to build something that will last and be passed down to our children one day. As we build this company, I am reminded of 1 Timothy 5:8 (ESV), “But if anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever.” With this company, I not only strive to provide a financial resource for my family but a financial education that can only be received and learned through working it day and night.