Sit n' Caddy
Garden Crafts is a small business subchapter S privately-held corporation with sales and production facilities located in Alpharetta, Georgia. Entrepreneur Keith Jones designed the prototype of Sit N’ Caddy, and has joined business forces with Rob Kane to market and produce this unique product The corporation will target its initial annual production at 10,000 units.
Garden Crafts’ sales and administration will be located in a home office shared by Mr. Jones’ Internet mail order business in Alpharetta. Mrs. Jill Jones will handle a majority of these duties.
Production facilities will be housed in an existing wood cabinet shop in Roswell, Georgia. The existing equipment was sold to Garden Crafts by the retiring owner. The building will be rented on a six-month lease with a month-to-month extension. Messrs. Jones and Kane will manufacture the product on a part-time production schedule.
2.1 Company Ownership
The corporate name of Garden Crafts was researched in the Georgia Department of State database, and has been reserved.
Garden Crafts will file articles of subchapter S incorporation in Fulton County, Georgia.
The corporation will have no more than 35 shareholders. It will only have individuals, estates, or certain trusts as shareholders, it will not have nonresident, alien shareholders. It will have only one class of stock.
At that time of filing with the State of Georgia, IRS form 2553 will be filed with approval of the board of directors and shareholders for subchapter S election. The fiscal year will coincide with the calendar year.
The Board of Directors will have the following members:
Mr. Keith Jones of Alpharetta, Ga., Mr. Rob Kane of Marietta, Ga., Ms. Jill Jones of Alpharetta, Ga., Mr. David Hogan CPA of Atlanta, Ga., and Mr. Ted Barner PA of Roswell, Ga.
President and Secretary of the corporation will be Keith Jones of Alpharetta, Georgia, Vice-President and Treasurer will Rob Kane of Marietta, Georgia.
Under the securities laws of Georgia, issuing stock to organizers, officers, and family members are exempt from registration. Hence, under the articles of incorporation, the directors will authorize 1,000 issued shares in Garden Crafts. Mr. Jones will be issued 100 shares (50% ownership), and Mr. Kane will be issued 100 shares (50% ownership). In consideration for each share issued, the shareholder will have a capital requirement of $20. Additional capitalization may be raised by owner’s contribution in return for additional stock, or by loan.
2.2 Start-up Summary
Our total start-up costs are projected in the tables and chart below. The majority of this cost is associated with a note held by Mr. John Houseman, former owner of Kustom Kabinets. He has agreed to sell us the equipment and supplies used in his previous business. The remainder of expenses come from legal, office supplies, insurance, and rent. The building that formerly housed Kustom Kabinets will be leased on a six-month basis with an option to extend.
Capital will also be raised by the sale of stock to the shareholders as outlined in the Company Ownership portion of this plan. Details are shown in the following chart and table.
|Start-up Expenses to Fund||$3,500|
|Start-up Assets to Fund||$11,500|
|Total Funding Required||$15,000|
|Non-cash Assets from Start-up||$11,000|
|Cash Requirements from Start-up||$500|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$500|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|John Houseman – Cabinet Shop||$10,000|
|Keith Jones – Stock Purchase||$2,500|
|Rob Kane – Stock Purchase||$2,500|
|Additional Investment Requirement||$0|
|Total Planned Investment||$15,000|
|Loss at Start-up (Start-up Expenses)||($3,500)|
|Total Capital and Liabilities||$11,500|
|Incorporation and Tax Preparation||$380|
|Brochures and Promotional Materials||$200|
|Insurance Premium (First Year)||$500|
|Rent (First Month)||$800|
|Expensed Equipment (First Payment)||$700|
|Total Start-up Expenses||$3,500|
|Other Current Assets||$10,000|
2.3 Company Locations and Facilities
Sales and Administration Office: Alpharetta, Georgia
Production facilities: Alpharetta, Georgia
Certified Public Accountant: David Hogan, Ronald Blue & Co. (Atlanta, Ga.)
Legal Counsel: Mr. Ted Barner, PA (Roswell, Ga.)