Hair Recycling Technologies
The legal name of the company will be established as Hair Recycling Technologies, Inc. Hair Recycling Technologies will be formed as a Sub-chapter S Corporation in the state of Delaware under the category “For Domestic Profit.”
Due to its tax benefits, an S-chapter Corporation will be advantageous since early phase start-up costs will be incurred by the founders. Delaware will be the place of incorporation due to its temperate legal requirements and pro-business environment.
2.1 Start-up Summary
A team consisting of six talented individuals has been formed. Of the four people who make up the company staff, all are the original founders of the company and its concept.
These individuals are the following:
- President and CEO: K. Justin Luber.
- Vice-president of operations/finance: Jason Mysliwec.
- Financial advisor: Hunter Korth.
- Marketing advisor: Robin Liu.
|Start-up Expenses to Fund||$2,550|
|Start-up Assets to Fund||$91,450|
|Total Funding Required||$94,000|
|Non-cash Assets from Start-up||$14,829|
|Cash Requirements from Start-up||$76,621|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$76,621|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$34,000|
|Loss at Start-up (Start-up Expenses)||($2,550)|
|Total Capital and Liabilities||$91,450|
|Total Start-up Expenses||$2,550|
|Other Current Assets||$0|
2.2 Company Locations and Facilities
Hair Recycling Technologies will begin its initial operations in South Bend, IN. A suitable location has been obtained in the basement of one of the founders. When capacity is exhausted due to growth, the operations will be moved and based in a larger facility in South Bend, IN.
2.3 Government Regulations
Because Hair Recycling Technologies recycles a waste product and incorporates it into an environmental product, the company is under the potential jurisdiction of the Environmental Protection Agency. The manufacture and sale of human hair is not currently regulated or enforced by either federal or state authorities. According to the Environmental Protection Agency, there are “no current restrictions on human hair.” Currently since the sale of human hair does not fall under any federal or state law regulations, we will not need to file with the Environmental Protection Agency.
Hair Recycling Technologies will obtain all required federal and state permits and licenses to operate its facilities. There can be no assurance that HRT’s operation and profitability will not be subject to future restrictive regulations or increased taxation by federal, state, or local agencies.