Davis & Davis 24/7 Childcare

Davis & Davis 24/7 Childcare
Name;
Institutional Affiliation;
Date.
Introduction
Davis 24/7 is a childcare home that offers safe and affordable day childcare to children of 16 years on a 24-hour basis. The organization provides support to parents and families who work on a full-time basis and is determined to develop an environment where care is provided away from home (Kemp, & Dwyer, 2011). The organization in its initiatives to provide efficient support to this families and workers has collaborated with The School Liaison Program with the functions of helping children transition from the daycare to the pre-school program. Special needs children are also incorporated into the programs of DCC with the aim of promoting care to the diverse needs of families. The purpose of this paper is therefore in developing a startup business for a day care facility.
The Business and its Products and Services
Davis 24/Seven 360 primary focus is in providing child care services that target the families falling under the category of single parents, double income professional families, and military shift working professionals who are committed to work and education functions and do not have the time to care for children on a 24 hour basis (Hamilton, Robert & Jonathan, 2003). The organization creates a home for children who are required to stay at the facility for 25 hours in a week through enrollments that are given to children to help them develop different skills and techniques.
The company focuses its products to the low, middle, middle to upper class and the professional income families who due to the nature of work and education may not have the time to raise their children (Kemp, & Dwyer, 2011). The organization enrolls children from the ages of 6 weeks to 18 who are placed under a program that aims at providing care and enhancing their cognitive, motor among other skills. The company also employs the services of medical professionals who operate in a sick bay and provide healthcare services to children who experience instances of diarrhea or vomiting, mild cases of ringworms, and fever. Two registered and professional nurses including a single doctor on call are part of the staffs employed by the company to attend to the health needs of these children.
The Kind of Business Entity and Rationale for Choice
Davis & Davis 24/7 Childcare due to the nature of its functions and structure is a limited liability company. The company is formed out of a partnership that involves four shareholders through a special written agreement. In the agreement of a Limited Liability Corporation (LLC), there includes the provision for management, the ability of the company to assign interests and lastly its agreements on the distribution of profits and losses (Hamilton, Robert & Jonathan, 2003). The limited liability act, therefore, gives DCC the privileges of venturing into the childcare business through an agreement that smoothly establishes flexibility into carrying the company’s functions. Through this, the company remains entitled to a flexible approach that cuts out other formalities such as Board of Directors meetings that are imposed on a corporation. The main limited liability corporation also proved essential into guiding the functions of DCC since its development required minimum paperwork and relative low costs in starting.
The owners of DCC under the limited liability corporation enjoy the benefits of exemption from taxes as a separate business, with all the profits and losses broken down to the company for each and every member of the company (Hamilton, Robert & Jonathan, 2003). The members of the company are obligated to report the organizations profits and losses of their personal federal tax returns as owners of a partnership would do. The rationale for the choice of this type of business was on the basis of economic efficiency. Through the limited liability corporation, the shareholders are less required to monitor the activities of the director and managers of DCC since their central role lies in investing in the company since there are limited financial resources.
Another element of the rationale for choosing this type of business structure was in the provision of efficient diversification by DCCs shareholders which allowed them to reduce the chances of personal risks that would be encountered in the event the company faced losses. Consequently, this company structure does not only allow for diversification but also permits the company in question the authority to raise capital at a lower cost to reduce the risks that would be incurred by the shareholders (Hamilton, Robert & Jonathan, 2003). This mainly explains the reasons why Davis 24/Seven Childcare Company sought for financial assistances from well-wishers and donors for the smooth running of its operations. Through diversification the stakeholders are given the credit of the company, an insurance policy to the shareholders since the risks that may be encountered, are covered by the third party creditors. The limited shareholders liability, therefore, facilitates a cost-efficient diversification, a factor that gives the shareholders the incentives to hold on diversified portfolios.
The limited liability partnership creates a platform through which the members are given the opportunity to pay equal liabilities as compared to the capital contribution that has formed the corporation. This rule, therefore, applies to all the stakeholders of the partnership that also requires that the limited liability clause is only except to one member (Hamilton, Robert & Jonathan, 2003). Under this rule, one of the stakeholders is necessary by the law to take full responsibility of the unlimited responsibility for the company’s debts. The members of this partnership also have a r...