A Legal Form of a Business

Background
Starting a business is a complex endeavor that entails several activities. The startup is referred to as Felicia’s Girls Club (FGC) that aims at improving the confidence of young girls aged 6-18 years and provide them with an opportunity to earn income from their talents. On the other hand, the vision statement of the entity is to be the largest dance studio in the country. FGC will offer a variety of dances, including tap dance, Jazz, lyrical and contemporary. It is estimated that the business will cost $10,000-$20,000. The purpose of the report is to select the most suitable legal form of business, organizational structure, strategies to enhance collaboration of workers, influence on various goals of different stakeholders, funding strategy, and the technology that will be required to improve the growth and profitability of the organization.
Legal Form of a Business
The legal form of a business will be a private company because it has several advantages over other forms of business. For instance, the owners of the business will have limited liability, which indicates that if the business becomes background, their assets may not be used to meet the financial obligation of the organization (1). Moreover, the transfer of shares is easier than the transfer of an interest in a proprietorship or partnership. Additionally, for shares to be transferred to another person the other shareholders must approve that helps to retain control of the organization. Since a private company has perpetual succession, it has more opportunities to raise funds such as venture capitalists and foreign direct investment. The business has perpetual existence, which indicates that its interruption is not affected by the demise, bankruptcy, or incapacitation of shareholders. Finally, there is no minimum capital requirement that indicates that the business can commence its operations as soon as it has the minimum capital it requires. However, when the business grows, it will be converted into a public company to raise the required additional capital through an initial public offer (IPO).