From a Sole Proprietorship to a Corporation Essay

From a Sole Proprietorship to a Corporation - Essay Example A corporation is a distinct legal entity with a name and it also enjoys many legal powers like a natural person (Cillers, 24). Thus, it can be observed that when the company is formed, it automatically acquires the capacity and authority to have its own rights and duties (Gibson, 198). One major distinction between a corporation and a proprietorship is that corporations can acquire and exchange property and they can enter into contracts. In this case, the new company to be formed will be called Global Courier Services Inc. This company will be incorporated from a small business that has been specifically concerned with providing delivery services of small parcels to clients located in different parts of the local city. However, as a result of booming business, it has been underscored to expand the business into a large company called Global Courier Services Inc. This new company will be comprised of different shareholders and it will compete with other large companies that are involv ed in this particular business. Global Courier Services Inc will specialize in transporting parcels, light goods as well as mail among different clients. The corporation will cover the whole state and it will be headquartered in New York. However, the company will have offices in major towns and cities around the state. The company will operate a fleet of cars and bikes that will be used to deliver various goods to different clients across the whole state. The company will be publicly listed and it will be run by a board of directors that will be selected by the shareholders. It is also intended that the company will be comprised of various shareholders though it will initially hold a 55 % ownership of the organization. The company will offer 24 hour services to the clients and it will also be comprised of a complaints office that will deal with various customer queries and other related issues that may affect them in carrying out business. When this company has been fully incorpora ted, it is expected to employ more than 3Â  000 workers across the geographical area it would cover in its operations. Local people with the knowledge of geographical areas in their respective cities and towns would be given preference in terms of employment. The company would also be comprised of a board of directors since it would be publicly owned and listed on the stock exchange in New York. All the major decisions in the company will be approved by the board of directors as well as the number of shares that can be made available to the willing shareholders. The board will also be responsible for hiring and firing executives when consultations have been made among different stakeholders involved in this particular business. The other important aspect about the operations of the company is that all appointments would be based on merit. Only suitably qualified people would lend executive positions. Since the initial aim of the new company is to incorporate it as a public company, the finding for the start-up organization will mainly come from different sources. Part of the capital will be carried over from the small company that used to over transport services which is now being incorporated into a large company. The other source of start-up capital will come from private investors who may be interested in this particular business. Stockbrokers will be approached in order to convince them to provide funding for this promising