Question

While on vacation in France, Christa ate some bread that she liked so well she decided that when she returned home she would start a bakery where she would also sell coffee and have a sitting area for customers. She is not quite sure what to do to begin her business and comes to you for advice. Following the advice of Joe Dudley, you recommend that she?

Answer 1

Christa should consider choosing a business structure that best suits her needs and goals when starting her bakery. Options include sole proprietorship, partnership, and LLC.

Step-by-step explanation:

When starting a business like a bakery with coffee and a sitting area for customers, Christa should consider choosing a business structure that best suits her needs and goals. Some common options include sole proprietorship, partnership, and limited liability company (LLC).

If Christa wants to have complete control over her bakery and be personally responsible for the business's debts and liabilities, she may choose a sole proprietorship. This is the simplest and most common form of business structure.

If Christa wants to share the responsibilities, risks, and profits of the bakery with another person, she may consider forming a partnership. Partnerships can be general partnerships (where all partners share equal responsibility and liability) or limited partnerships (where there is at least one general partner and one or more limited partners).

Alternatively, if Christa wants to protect her personal assets and have flexibility in managing the bakery, she may opt for an LLC. An LLC offers limited liability to its owners, called members, while still allowing more flexibility in management compared to a corporation.

It is crucial for Christa to consult with a lawyer or accountant who specializes in business law to discuss the advantages and disadvantages of each business structure and choose the one that aligns with her goals, risk tolerance, and growth plans.