Scenario: Inez is a sole proprietor/owner of TechTrac, a computer and IT consulting business. Her clients are small to medium sized businesses, colleges, and individual home users. Inez wants to expand her business, buy new equipment, and hire an employee. She needs to obtain additional capital to expand TechTrac, but she does not want to lose control of the business. Also, Inez has chosen not to take out any sort of loan or use a credit card to obtain additional capital to expand.
As a sole proprietor, what is her best option to obtain additional capital to expand and yet retain control of the business? Why? (you do not not need any additional facts to answer the question)
Learning Activity 2:
Read case scenario below and analyze.
Scenario: Richard and 6 friends plan to start a computer systems, software and technical support business in that will (1) design, install and provide support for various computer systems for businesses, (2) sell, install, and provide technical support for businesses for various types of software, and (3) provide general technical support for businesses needing technical help with computer systems, hardware, and/or software.
The business name will be Computing Technologies. Richard and friends are prepared to grow the business quickly and initially hire office support staff, a full-time marketing and client relations professional, and approximately 8 technical staff.
Richard and his friends are concerned about various types of liabilities for Computing Technologies and think they want to organize the business as a LLC.
A. Discuss specific advantages of organizing Computing Technologies as a LLC.
B. Discuss disadvantages for organizing Computing Technologies as a LLC.