/Subject: Business / General Business
You are an accountant who has been hired as a consultant to provide financial advice to Cake Dash, a startup dessert delivery/food truck company, while they get off the ground.The owner specifically wants to know how he should structure his business and is especially concerned with taxes. He also wants to be aware of any accounting liabilities associated with the business structure you recommend. You know the following information about Cake Dash:*The company has $250,000 cash on hand to start.
*At the very least the company will need two work trucks that cost $35,000 each and an additional $15,000 in special tools and equipment.
*The initial business staffing consists of the owner and 2 employees. Employee compensation costs $30,000 per employee, per year.
*The company can initially rent a location for $500 a month, but would eventually like to purchase a property that would cost $100,000.
Your job is to analyze the company’s financial projections and to write a report that covers your recommendations on the following subjects:*Discuss which type of business ownership you would recommend (sole proprietorship, general partnership, limited partnership, etc.) given the company’s financial assumptions and the owner’s concerns about taxes. Be sure to discuss the pros and cons of the business structure you think is most appropriate for the company, as well as how it will be taxed.
*Calculate and explain the company’s current, long term, and estimated liabilities. Include discussion about which aspects of liability apply to Cake Dash and which do not.
*Recommend a method to depreciate equipment, vehicle, and real-estate expenses and explain why you chose that method.
The report will be delivered as a Word or PDF document that must be between 1500 and 2000 words. You must use at least three appropriate sources to support your advice to the owner, cited using APA format.