Employee Benefits Administration
Company Summary
EBA is a privately held Pennsylvania Limited Liability Company (LLC). Co-owners are Diane Davis and Cindy Wells. The office is located on Main Street, Morgantown, PA. This location was selected by the principals since it is a fast growing suburban area and is located within minutes from the Pennsylvania Turnpike, allowing quick access to surrounding growth areas.
2.1 Start-up Summary
The partners of EBA have spent almost a year planning this business venture. They have opened the office, and spent much time, energy, and their own funds in bringing the business this far.
The initial investment was used to purchase IBM laptop computers, software licensing fees for the Human Resources Information System, computer accessories and docking stations, small business education, seminars on current employee benefit trends, memberships in organizations, rent and security deposit of an office, and various other start-up costs.
Considering the forecasts predict an overall loss for the first year of business, EBA will follow avenues for obtaining a small business loan, preferably one guaranteed by the Small Business Association.

Start-up | |
Requirements | |
Start-up Expenses | |
Advertising – Brochure | $430 |
Advertising – Business Cards | $120 |
Bank – Cash | $160 |
Computer Technician ( Consultant) | $250 |
Dues and Subscriptions | $450 |
Fax/Copier Combination | $65 |
Furniture | $500 |
Internet Access (DSL) | $150 |
Insurance (Liability) | $1,000 |
Laptop and Computer Accessories for LAN | $4,370 |
Laptop Cindy | $750 |
Legal Fees | $500 |
Licensing (Software) | $2,000 |
Office Expense | $150 |
Phone System (Second Hand) | $85 |
Phone Installation (Conestoga + Rapp) | $500 |
Postage and Meter (Stamps, Meter, PO Box) | $125 |
Printer | $550 |
Professional Fees | $500 |
Rent and Security Deposit | $1,800 |
Seminars and OOP Expenses | $2,000 |
SHRM – HR Comply – Legal Access | $475 |
Telephone (Monthly) | $748 |
Training (EBS) | $2,400 |
Utilities | $200 |
Web Hosting (Domain) | $150 |
Total Start-up Expenses | $20,428 |
Start-up Assets | |
Cash Required | $11,000 |
Other Current Assets | $0 |
Long-term Assets | $0 |
Total Assets | $11,000 |
Total Requirements | $31,428 |
Start-up Funding | |
Start-up Expenses to Fund | $20,428 |
Start-up Assets to Fund | $11,000 |
Total Funding Required | $31,428 |
Assets | |
Non-cash Assets from Start-up | $0 |
Cash Requirements from Start-up | $11,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $11,000 |
Total Assets | $11,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Cindy Wells | $15,714 |
Diane Davis | $15,714 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $31,428 |
Loss at Start-up (Start-up Expenses) | ($20,428) |
Total Capital | $11,000 |
Total Capital and Liabilities | $11,000 |
Total Funding | $31,428 |
2.2 Company Locations and Facilities
The principals of EBA chose Morgantown to locate the office, not only for its proximity to the Pennsylvania Turnpike and the growth potential of the area, but also because of a regional telephone service’s capability of offering DSL, high speed Internet access. DSL is extremely important considering EBA is using an Application Service Provider to house the Human Resource Information Software (HRIS) system. Accessing client information is instantaneous using DSL; as opposed to normal dial-up access which could take much longer.
EBA has signed a one year lease agreement for the 500 square foot office space for a monthly rental fee of $600. The office is located on the second floor of a small office building. The principals have already purchased a phone system, fax machine with limited copier capability, and a printer.
Recent years have seen much industrial and residential expansion in the northern and western suburbs of the Philadelphia, PA area. In under one hour, traveling east or west, employees of EBA can be in the York, Lancaster, Reading, Allentown, Exton, and Philadelphia areas.
2.3 Company Ownership
The principals of EBA share equally in the ownership. Although each partner has different strengths within the Human Resources field, cross training is a very important part of their management plan. It is very important that each can handle every aspect of the business, especially in the start-up years. As the company grows and adds staff, the principals will diversify into other equally strategic positions.
The principals decided to establish EBA as an LLC, Limited Liability Company, based on their investigation of liability and tax treatment.