Form of company organization

Name of the company

When a new company is started, one of the first things it should have is its name. Name is something that one company distinguishes from another in the market where a great amount of various entities exist. That is why it is very important to create a name that would:

· be short and easy to remember;

· reflect the main idea of the company;

· show company’s uniqueness in the market;

· distinguish it from any other.

The name of our company is “Utillight Service” and it fully satisfies the requirements given above. First of all, the name is composed of only two words which are easy to remember and sound quite melodic together. Second, the name reflects the main sphere of activity of our company: it provides service of UTILisation of lams (which means care about ecology) and also UTILity for the companies-because using our services will be beneficial and profitable for them. Third, no similar company with such name exists in the market which makes it very unique and by that distinguishes from all others.

Company address

Our company’s office is registered in Saint Petersburg, Central district, Vilenskiy per. 15/17, metro station Chernishevskaya. (Please, refer to Appendix for further information, including photos)

The choice of exactly this place of company’s registration is motivated by the following criteria:

· The location of the office is convenient both for our clients and our firm;

· It is located in the center of Saint Petersburg so is relatively close to various firms and companies - our potential clients;

· The office is integrated into the scheme of developed infrastructure, i.e. metro, bus stations, etc. One of the essential requirements was presence of parking which our clients could easily get access to;

· Office should not be large (for the purpose of economizing and convenience) since the initial team of the company includes not so many people and extra space would not be required.

Form of company organization

When the form of organization was under consideration, there were several crucial points. First, our company is profit-earning. Second, there should not be many issues concerning documental part and liability. That is why we chose Limited Liability Company (LLC) type of entity since it satisfies our requests to a great extent and seems to be the most convenient and efficient form of entity.

LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. So is a great combination of best features of these forms of organizations.

The concept of “Limited liability” is reflected here - the owners of the LLC, called "members," are protected from liability for acts and debts of the LLC. Like a sole proprietorship or partnership, an LLC enjoys pass-through taxation. Under the default tax classification, profits taxed at the member level, not at the LLC level (i.e., no double taxation), which eases paper work and documentation and provides no loss of money. With "check-the-box" taxation, an LLC can elect to be taxed as a sole proprietor, partnership, or corporation, and this provides much flexibility for the company and allows choosing the most efficient way of taxation.

Also, LLCs are enduring legal business entities, with lives that extend beyond the illness or even death of their owners, thus avoiding problematic business termination or sole proprietor death - this is also a crucial point because in case one of the members decides to leave, the company will not break apart.

Date: 2015-12-24; view: 1012