The Diwale Cake Company

In considering whether the Diwale Cake Company should move from a sole proprietorship to an LLC there are a number of important elements that one must take into consideration. In these regards, there are a number of advantages and disadvantages that must be considered. One of the major advantages of the LLC form over the sole proprietorship form is indicated in the LLC name, mainly that this form allows for limited liability among businesses. For instance, if Diwale were to find themselves in a large amount of debt, the owners of the company could only be held responsible in a limited capacity. Another advantage of the LLC format is that it allows owners to allocate their tax structure differently. For instance, in this format the IRS lets the companies decide whether they will be taxed