EGR 403 Asset Allocation in Technical Decision Making Project #2 Team 8

Team Member Role(s) Responsibilities

Matt Easton Speaker/SummerizerSpokesman &

Conclusion (Written & Spoken)

Syna Mohkami OrganizerOverlooks all aspects of project, reports to

Leader

Vereker Tam Researcher/TechieLead researcher,

oversees all technical details

Sergio Zaragoza LeaderManages overall

project, fills in wherever needed

Business VenturesSelecting the right type of incorporation

• Comparison of two types of business entities:– Corporation Type C• Taxed on the corporate income directly• Unlimited Number of stockholders

– Limited Liability Company• Hybrid business entity having characteristics of both a

corporation and sole proprietorship

The Case Study• Four engineers want to incorporate their company that designs and

manufactures solar panels for residents in the Los Angeles area. They’ve been in business for the past 10 years

• The company currently has:– gross income of $800,000.00 / year – has 80 employees – $200,000.00 in assets (machines, property, tools, etc.)

• Want to choose the right type of corporation that can help maximize profit.

• There are two options :1) Corporation Type-C2) Limited Liability Company

• Choice will be based on maximum profit after taxes

Resources

o Research the differences between business types

o Research the cost benefit’s between them with respect to the tax codes of California