ACC 555 Individual Tax Planning

Dr. Palumbo

Assignment 3

Analyze the start-up company you created.
Startup companies are popping up around us every day around the world. Most of these businesses were started in someone garage, while some companies just got really lucky to be incorporated. Most of these entrepreneurs who start these businesses take huge risk, because they put all of their money and resources into something that they think or hope will work for the long haul. They also have to be innovative, because most are starting businesses that have already been established, but they will have to come up with new and creative ways to run their business. As a future entrepreneur, I know that there are things that you have to look at before starting a business. One of the most important things is to look at the type of accounting you want to have for the business. This could be one of the most important decisions that you could make, along with coming up with a strategic business plan and the proper budgets for all of the departments. Depending on the type of business that you create, there are certain types of accounting methods that you can use. The business I will come up with, I will incorporate as and LLC, with my friend Josh Brown. I will invest 40,000 in startup cost, and he will contribute a building that he leased after he had a business that failed with a rent cost of 2,000 a month. The lease has 10 years left on it, so if this works out, it will be a good long-term investment in that building. Later my parents wanted to be part of the business, so the contributed a $50,000 dollar stock certificate that they have with another company. What will we use the space for? Our first thought was to open a restaurant, but there would be too many cost that we would need to account for. Plus the area has a lot of different kinds of food already. This area is in need of something that is different, and fresh, something that will be very helpful for the area to take advantage of.

Picture this, you are sitting at home and you are craving your favorite Italian food which is across the town. The place does not deliver so there is no way that you will be getting this for dinner tonight. So what do you do? Do you get in your car in the 20 degree weather and drive halfway across town to get your favorite food, or do you stay in your nice and cozy home and get a microwave pizza. This fine dining establishment would probable do well to be able to provide deliveries to their customer, but they don’t. Well this is where my companies comes into play, At Your Service delivery. We will do deliveries for those who do not provide those services. Our mission is to provide service to all those people who need it, not only food delivery, but also things such as medicine and other errands. We will sit in traffic for you instead of you going out in the cold to get the things that you want and need done. We will mostly do this for the wealthy areas of town, because I think these would be the people who would be best suited for this type of service. The most important factor I think in running any business is the people that you will hire to run the business. Also the people who you will make the face of the business by having them going out and making deliveries to clients. As the owner of the business, I will need to be an expert in all facets of the company, but especially the accounting and finance aspect. I will also need to know what is going on in the economy to be able to make the proper accounting decisions on what we need to do as a company to stay successful and grow.
Determine the types of accounting period.
My first year in business I will purchase a building to run my business from. I will lease one part of an office condo in Brentwood, Tn. The reason I will chose Brentwood is because it is a