Essay Example on Legal Form of Business

Published: 2022-12-21
Essay Example on Legal Form of Business
Type of paper:  Essay
Categories:  Business Business law Business strategy
Pages: 6
Wordcount: 1455 words
13 min read


For any venture to be successful, there is a need for proper planning to be done to ensure that the business is strategically placed to face any challenges that might face it in its future. Deciding on the legal structure that the business will take, the roles and the number of employees and the steps and processes to be taken in the case that the business improves and grows. In this paper, I will analyze these planning steps of business and relate them to my proposed web design business.

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Legal Structure

For any business to operate, it must have a legal structure that it identifies itself with. The legal organization structure of a business is how the business recognized by either the government or by investors. This legal structure will not have a lot of impact on the day to day operations of the business. However, it is important as it determines the amount of taxes that the business will pay and the type of investors that the business will attract. Legal structures of businesses can be changed at later dates, but this is a tedious and expensive process. Because of this, it is vital that the entrepreneur makes the right decision in the first time of doing the business. There are different legal structures that businesses can take depending on the number of people in their payroll, the complexity of operations and whether or not they aim to make a profit.

The legal structure that I would pick for my web development business is a sole proprietorship. I would do this because when the business is starting, and the sales and revenue are low, this is the legal structure that would allow me to pay the least taxes. In this legal structure, the business is treated as an extension of me. The profits that it makes are treated as my tax returns, and there is no separate filing. I will be personally responsible for the liabilities, and if the business fails to pay debtors, I am the one who will be sued. After some time and the business grows, I would prefer switching from a sole proprietorship to a Limited Liability Company. This is because this type of legal structure enables the business to grow even further despite the cost and tiresome procedure of making this switch from a sole proprietorship to a Limited Liability company. Through this structure, the business will be able to get loans and financial aid that will make it grow exponentially. Furthermore, the business will be treated as a separate legal entity, and in the case of failure to pay its debts, the shareholders will not be sued. This legal structure also ensures that the business has more freedom to expand and employ more personnel than if it was a sole proprietorship.

For the business to start and succeed, there are several technologies and software that will be required. Some of these technologies include servers where the websites will be stored and will be accessed from, laptops and computers for the workers to develop these sites from and programming software. The process of web development needs some software that will enable the workers to program the functions and look of the website from scratch. Since there are different software depending on the programming language that is to be used, some of this software include Java, Sublime Text, Visual Studio, and NetBeans. The workload of every person will be dependent on the needs of the website to be made and the complexity of the website. For Example, if on a given day we get a customer that wants a simple website for his daily vlog, the people who code the front page of the website will have a lot of work as the website ordered for needs their expertise. Similarly, is a customer orders a website that would require a payment gateway, the workers who code payment gateways will have it all to do.

One person will not take the development of the website from start to finish. I would rather have a person that has specialized in one area and does it especially well than have someone that is a jack of all trades but master of none. Furthermore, if many people are incorporated into the production process, not only will creativity increase but also errors and mistakes will be easily pinpointed and rectified. The different tasks to be done by the workers will require different competencies. I will require the web developers to be conversant with different programming languages that are used to create the website. The jobs that will be available will be programming jobs. The employees will be required to write code that when uploaded will show some of the most beautiful websites ever. There will also be other jobs like the secretary of the business, the watchman and the company driver.

I plan on employing people who just graduated from colleges and universities. Although these graduates do not have the experience needed to perform these programming tasks properly, they are new to the workforce, and they are cheap. This will ensure that we have a low wage budget in the business. However, for our business to succeed, quality should be our main priority. To achieve this with the inexperienced employees, I would employ a few experienced people that would oversee and guide these young programmers. This will ensure that we keep our wage bill low and at the same time produce top of the line results for our clients. One tactic that I would use to get these young graduates to come and work with me is to go and conduct functions and seminars in top programming universities and campuses. In these functions, I will give these students the advantages of coming to work with me. I will also approach individual students that I know to perform well in programming classes and propose a possible partnership between them and me. This will ensure that the business gets a constant flow of talent and young blood.

For a start, I will need three programmers that are conversant with different fields. First, I will need a programmer that is an expert with HTML, JavaScript and CSS languages. This is the person that will be responsible for the look and behavior of the website. They will be responsible for how new customers into the website will view the site. The second employee that I will need is a backend developer. This is the programmer that will be responsible with what goes on in the background of the website. This employee should be conversant with, PHP, Python and C languages. Knowing some of the front-end developing languages will be an added advantage. The last employee that I will need when the business is starting is the experienced programmer that knows both front and back end programming and can link the two together. This person will be able to guide the two young employees to ensure that they produce high-quality code. As the business grows to become a limited liability company, the number of employees will increase in the same ratio.

When the business starts making profits, it will start growing in both the client base and the number of employees needed to cater to the needs of these increasing client bases. One of the ways to cope with this growth is to change the business from a sole proprietorship to a limited liability company. This will ensure that the company has access to more financial ability and aid. The business will also be a separate legal entity from the previous sole owner. Another way to cope with this growth is to seek financial aid. After the business has become a limited liability company, it will have access to more financial aid from financial institutions. This aid will make the business grow and expand to new areas that were previously unexplored. The financial aid will also ensure that the business does its marketing more aggressively and as a result generate more money. Furthermore, the company will have more money to employ more competent and qualified personnel that can ensure the making of quality websites that go above and beyond the client's expectations.


Burns, Paul. "Running the business." Entrepreneurship and Small Business, 2011, pp. 221-256.

Great Britain. Department for Business; Energy & Industrial Strategy. Department for Business, Energy and Industrial Strategy Annual Report and Accounts 31 March 2018. 2018.

Hiller, Janine S. "The Benefit Corporation and Corporate Social Responsibility." Journal of Business Ethics, vol. 118, no. 2, 2012, pp. 287-301.

Yuksel, Ihsan. "Developing a Multi-Criteria Decision Making Model for PESTEL Analysis." International Journal of Business and Management, vol. 7, no. 24, 2012.

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