A Partial Business Plan

Vanguard International, LLC will be the name of the new business. Numerous forces, particularly technology, are changing the global economy and how income is distributed. The logistics, warehousing, and transportation industries all face growing issues as the world population expands. As the world's population continues to rise, more services, production, and distribution are needed. Additionally, economists predict that by 2030, global trade in goods and services would have tripled, reaching $30 trillion. All of this puts pressure on the logistics sector to maintain the flow of enabling goods and services. It's because of all these that Vanguard International has decided to become one of the key players in the logistics industry to facilitate importation and exportation of products and services all over the world (Christopher, 2016).
Mission
The firm's mission is to provide far-reaching import or export consultation and brokerage services that involve negotiation of purchase contracts, delivery, shipping, and warehousing.
Types of Business (service or product)
The core function of the company will be to provide logistics services to facilitate the exportation and importation between the manufacturers and their customers globally. Therefore, the company shall be providing appropriate support services that will be needed by the customers who associate with international foreign trade. The company will also provide warehousing and transportation services. However, the company will concentrate more on providing services to clients importing or exporting heavy commercial machinery and vehicles between the U.S, Asia, and Europeans nations (Christopher, 2016). The firm location is Baltimore, Maryland.
Legal form of the business
This firm will be a limited liability corporation that is limited by the number of shares that are held by the shareholders/investors. This kind of business has been selected because it is the ideal legal structure that will help to keep the company profits to the shareholders (Fontana, 2010).
The advantages of the limited liability company are that on the circumstances, whereby the company can experience financial challenges, then the private assets and finances of the investors will be protected. Therefore, if the firm is not in a capacity to pay the debts, the shareholders can only contribute based on the nominal value of their share (Fontana, 2010). Another advantage is the tax efficiency, whereby high flexibility and more opportunity are offered by limited enterprises in the case of taxation on personal income and profits. The business profit has a rate of 20% company tax irrespective of the profit size made by the corporation. Moreover, the directors of the company can maintain their income level at the higher bands by taking remuneration together with salary and dividends. This leads to more money being available, and it can be utilized for distribution among directors and shareholders and be used for reinvestment. Another merit is that professionals and company image is established by the limited company, thereby improving the value of the business. Many industries and corporations like doing business with limited enterprises instead of sole traders, since limited firms are regarded to be more established, credible, and committed. Most outstanding limited liability company provides a sense of security to investors and professionals (Fontana, 2010).
The disadvantages of Limited Liability Company are that it is costly to set-up and there are many restrictions and complicated rules governing the bookkeeping and accounts. There is also a restriction on raising capital, especially now that Vanguard International is not planning to go public for now. Also, dilution and disputes of powers exist in the limited company between the shareholders and directors regarding what is good for the enterprise. There are also specific restrictions to the company name, and the information of the company owners is displayed in the public domain (Fontana, 2010).
The types of officers that must be employed in the company are;
Logistic manager -will establish and supervise the implementation of logistics policies, advice on the various status of logistics program, monitor the particular supply chain, implement consumers' requirements, and solve problems regarding customers, export or import, logistics systems, and transportation (Christopher, 2016).
Accountant -will handle accounting and financial issues.
Lawyer - will be handling all legal matters related to the whole logistics business, contracts, state, local and federal government legal requirement among other legal matters.
Transport manager - will be handling all matters relating to transportation.
Consultant manager/broker - will be managing clients on issues concerning transportation, importation, and exportation of products and also negotiate price on behalf of customers if they request.
Warehouse manager -will be handling all the issues relating to warehousing.
Human resource manager - will be handling all human resource issues such as hiring, training, setting salaries and allowances, and job description among others.
To register a limited liability company in Maryland is easy and affordable. The company must be registered with the Maryland Department of Assessments and Taxation to ensure all forms are filled, and all formation requirements are met, and the required fees are paid. The requirements are: organizer's address, signature, and name; registered agent's signature, address, and name; the purpose of the LLC, and LLC address and name. The fee charged to fill the Articles of Organization is around $100, whereas processing services are charged a minimum of $50 (Licenses & Permits, 2017).
Legal setting of Business
To start a logistics business in Maryland, it is a legal requirement that you must have insurance cover, physical office space, necessary permits and licenses from federal, state, and local governments, tax permits, safety compliance certificate, necessary equipment, necessary finance, and qualified accredited workers (Davidson, 2017).
Since, Vanguard International will be dealing with logistical issues relating to importation, exportation and foreign trade, and the company will be required to comply with the foreign trade zones (FTZ) Act. It will enable the services provided by the firm to receive equal customs treatment in the U.S and outside the country. In the term of zoning, the company is permitted to operate under industrial zones near the port since it will also be providing warehousing services. Also, based on the nature of the operations of our business, home based business is not appropriate, especially due to warehousing and transportation activities (Gorman, 2010).
Also, before starting business operations, environmental clearance certificate is a requirement and must be renewed annually to ensure the company adheres to the environmental laws and regulations. For the warehouse to begin operations, the company must apply for the Safety Compliance Certificate to ensure that the operations of the warehouse are within the rules and regulations stipulated in the Safety Act. The restrictions on zoning are only applicable to the warehousing, part of the business; other business activities have no restrictions. Also, since the firm will be handling, transportation services, the company must first comply with specific transportation business forms, permits, and licenses that are provided by the Maryland Department of Transportation and State Highway Administration (Davidson, 2017).
Location Requirements
The company will be located in Baltimore, Maryland. This location is critical to the business due to the presence of the ports. Moreover, the port is the core equilibrium whereby the products and services that the company will be dealing with must revolve. Also, there are much manufacturing, importing, and exporting companies that are located in Baltimore and Vanguard International targets these businesses to be part of the core customers. Also, this location has good transportation infrastructures, many rental warehouses, right distribution network, and trans-load facilities that are essential for the company's business operations. Also, good transportation infrastructure such as, good road network, railway, sea, and the airport make Baltimore a significant location that is easily accessible by the targeted customers (Laulajainen, 2011).
Business License Research and Costs
To acquire a business license and permit to conduct business in Baltimore, Maryland for federal and state; one has to apply online to the Maryland Business License Information System. In that system through Maryland Department of Assessments and Taxation, whereby after registering the company you file your personal property returns through the Maryland Business Express and then establish tax accounts guided by the Comptroller of Maryland. Also, register the trade name after checking previously recorded names. All the fillings and registration with exception to personal property returns are processed by the Department of Assessments and Taxation within three business days, and necessary fees are charged. The Articles of incorporation is charged $100, organization and capitalization fee is $20, the expedited service fee is $50 and returns mail fee is $5. After finishing the process of registering the business, one is provided with all the account numbers of the business and necessary licenses and permits. Also, the U.S & Foreign Commercial Service helps the start-up companies like Vanguard International on how to win and compete in the global market (Licenses & Permits, 2017).
Insurance requirements
This type business, require different types of insurance or permits or a complete package of insurance offered by the insurance companies. The insurance required is Logistics Insurance Package that includes: custom broking, warehouseman's legal liability, crime coverage, general commercial liability, property, contingent cargo, errors and omissions, road/rail transport, fire, and freight forward/logistics cargo liability (Davidson, 2017).
Bonding is also necessary for this business, because the company will be seeking to enter contracts with its targeted customers. Therefore, the customers are expected to demand a guarantee of performance to guarantee that the contract/work they have assigned the company is done and that the clients are protected against losses from damage or theft done by the workers. Also, many importers that the firm is targeting usually demand specific obligations to be fulfilled in every import transaction. Therefore, even though bonding will obligate the company to pay claims in case employees misbehave, bonding will provide great benefit to Vanguard International, because it will make the business to become competitive and more desirable by the customers (Christopher, 2016).
The mandatory insurance for employees that the company must consider is an occupational accident, workers compensation, health insurance coverage, and pension. The other types of insurance can be regarded as later when the business reaches its growth stage (The United States, 2008).
Proprietary Rights
Vanguard International can create or own the following proprietary rights:
Trademarks - the customers will identify Vanguard International through its logo or business name. Therefore, before starting the business, the company management must design a trademark, that is, 'sign,' which the company will be using to differentiate its services and products from those of its competitors. But before registering the trademark, it is advisable for the company to use it together with a symbol ™ to create public awareness that the sign is the trademark of the company. After creating awareness, the company should register the trademark and replace the symbol with the ® to enable the public to understand that the sign is now a registered trademark of the enterprise (Cornish, 2010).
Confidential information and trade secrets - trade secrets are information, know-how, and ideas concerning how Vanguard International will be running the business, information about the company processes, names of the trusted suppliers or contractors, and any crucial information that is vital to the daily operations of the firm. These trade secrets and confidentiality are significant to the company, because if they get into the hand of competitors, they can cause great harm. Confidential information and trade secrets are protected by entering into legally binding agreements with the customers, vendors, and employees (Cornish, 2010).
Copyright - it is an automatic ownership right of the original work such as photos, videos, publications, brochures, and website among others. It means the company has the right to manipulate and use these materials (copyright) for its business purposes and have the right to prohibit other people or firms from reproducing these materials without its consent. These materials are significant, since they are valuable information concerning the operations of the company. Vanguard International can protect its copyright by utilizing the symbol © together with the name of the company to create awareness. Moreover, it is important for the company to include the provisions regarding its copyright in the contract to notify others for them to assist with enforcement (Cornish, 2010).
Employment Law and Requirements
The employment issues of the company are governed by a host of local, state, and federal law. Therefore, the employment laws and regulations that the firm must comply with while operating in Baltimore, Maryland are; the Family & Medical Leave Act, the Labor Management Reporting and Disclosure Act (LMRDA), the Employee Retirement Income Security Act (ERISA), the Occupational Safety & Health (OSH) Act, and the Fair Labor Standards Act (FLSA) (Davidson, 2017).
Vanguard International will be controlling how, where, when, and by whom the work will be done. Because of this the company will be employing workers and will not rely on the independent contractor for now, but maybe in future, if there will need to do so. As a new company, it will not be advisable to work with independent contractors, because the laws based on the common-law doctrine and IRS rule independent contractors are legally allowed to determine the means and manners in which contracted results, products, or services are achieved. During the first two-phase (introduction and growth) of this company, it's critical that the management is in control of everything to speed up the necessary implementation that will be required to make Vanguard International competitive in the service industry. And this can only be realized when the company has full control of the employees (The United States, 2008).
The mandatory taxes that the firm is required to pay are: the employees' compensation/disability premiums to a state insurance fund, federal and state unemployment tax, social security & Medicare tax, corporation tax, and federal income tax. Other taxes will be based on the specific nature of operations, which is expected to keep on changing due to the large operations of the company (Brackman, 2016).
Purchase Orders and Contracts
For outsourcing, the company, the company will use the different type of pricing arrangement based on what is being outsourced. The company will use a purchase order (PO) when there is an agreement on specific products/services for an agreed price. On that way, the supplier will ship or deliver the products before payment, and the company will have an advantage of checking any discrepancy regarding what was ordered. However, purchase orders will only be used on matters relating to short-term issues (Brown, 2012).
To create a long-term relationship with the suppliers, the company will also use contracts to ensure that there is a legal binding agreement between the vendors and Vanguard International. This will help to create an obligation on how particular task will be conducted. The pricing arrangements that will be used by the company are firm fixed price and fixed price with economic price adjustment (Management Concept, 2003).
The company will use a firm fixed price contract when there is an adequate competitive price, when reasonable cost comparisons exists and is supported by pricing data, when available pricing information allow realistic estimates, and when it is possible to identify performance uncertainties, whereby reasonable estimate cost is added to cater for the impact (Management Concept, 2003).
Also, the company will use fixed-price contracts with economic price adjustment on the circumstances where there are critical doubts regarding the labor conditions or economic stability, which will occur during the extended moment of the contract performance. It may also be used when there are adjustments based on the agreed price (Management Concept, 2003).
For other types of contracts, the company will consider using time and materials and labor contracts. But only as the last option, when the company finds itself in a situation whereby, it must meet its need in particular circumstances. However, this option will only be used when other types of contracts are not suitable (Management Concept, 2003).
Torts and Crimes Protection
The following are types of torts and crimes that relate to Vanguard International business operations and the company needs protection from these disputes and damages.
Crimes
Property damages - this happens when someone either employee or outsider destroy the properties of the company (Cheeseman, 2016).
Burglary/theft - this occurs when an employee or outsider steal resources or information of the enterprise without the management consent (Cheeseman, 2016).
Computer crimes - this involves using a computer to aid in committing a crime like stealing money from the account and using a computer to infringe copyrights from internet among others (Cheeseman, 2016).
RICO cases - this involves using the company's business operations to conduct illegal business activities like drug peddling, fraud, extortion, and prostitution to make a profit (Cheeseman, 2016).
Arson - this happens when an employee or outsider cause fire intentionally on the properties of the company (Cheeseman, 2016).
Fraud - this occurs when employees commit financial offenses to steal from the company or evade from paying taxes (Cheeseman, 2016).
Antitrust violation - this occurs when company agents violate the rules of the enterprise when performing their duties on behalf of the enterprise. The antitrust violation involves crime like price fixing (Cheeseman, 2016).
Trespasses - this happens when unaccredited or outsider intrudes into the company properties like land, computers, warehouse, and restrained areas among others without authorization from the management (Cheeseman, 2016).
Torts
Theft of trade secrets - these are proprietary information, which the company usually uses to conduct its business. Therefore, they should be protected so that in case they are stolen or breached they can be remedied in the court (Cheeseman, 2016).
Tortuous interference - this happens when one party illegally interferes with the business relationship or the contract of another party. It also includes how damages are calculated and list of the necessary trading elements (Cheeseman, 2016).
Restraint trade - these are any illegal acts, which might hinder Vanguard International from conducting its business in a normal way without these hindrances (Cheeseman, 2016).
Fraudulent misrepresentation - these are in the context of a business transaction, whereby one party either recklessly or falsely misrepresents its position in the contract leading to serious injury to the Vanguard International (Cheeseman, 2016).
Commercial disparagement - these are forms of defamation that happen to business corporations, whereby damaging and a false statement regarding Vanguard International are published (Cheeseman, 2016).
Trade libel - it's a unique form of defamation, whereby Vanguard International can suffer financial losses due to the publication of statements that are not true (Cheeseman, 2016).
Property and Requirements
The following properties are necessary for planned business operations and startup
Computer systems - these will include computer and printer. Also, modern software that has customer information management, record keeping, accounting, and programs designed particularly for logistics services and other administrative programs (Christopher, 2016).
Buildings and furniture - they include offices and its furniture and warehouse and its proper equipment (Christopher, 2016).
Vehicles - they include small vehicles for daily operations of the business to be used by management and trucks that will be used to transport cargo belonging to the customers (Christopher, 2016).
Others - typewriter, copy machine, modem, fax machine, paper shredder, postage scale, copy machine, and telecommunication equipment such as e-mail, toll-free number, pager, cell phone, voice mail, telephone, and fiber internet connection (Christopher, 2016).
For the buildings (offices and warehouse) and vehicles, the company will start by renting, and later when the business begins to make a profit, part of it will be used to purchase/lease vehicles and trucks that can provide services for about three-four years. The decision whether to buy or lease vehicles and trucks shall be made after the company starts making a profit and shall be based on what option shall be more economically viable. All other equipment such as computer systems among others will be bought (Christopher, 2016).
The reason for renting part of the equipment is because this business requires a lot of capital to start. Therefore, bearing in mind the cost of purchasing the necessary equipment, it will not be easy due to financial restraints as beginners, and also it might affect the liquidity of the company that is required to run daily operations. However, equipment relating to computer systems and others, the company shall buy them to protect its business image or leakage of information relating to the kind of software being used (Christopher, 2016).
UCC Considerations
Vanguard International intends to do business across all the states in the U.S if it will be possible in future. Nevertheless, in the current start-up, the company will be conducting business with the neighboring states and expand in future. Therefore, Vanguard International shall comply with the UCC all the time when conducting business activities. The UCC will help the company not to be blindsided by different laws when doing business in other states. Moreover, for Vanguard International, UCC acts like the covenant of fair dealing and good faith, whereby the company, customer, and supplier when striking a deal or agreement, all parties must operate under this covenant of fair dealing and good faith. Also, the company will hire a competent lawyer that understands UCC very well to ensure that all the company arrangements, lease, or contract for financing all conform to the UCC as it is adopted by the state of Maryland (White, 2012).
Other Considerations
The other important things to consider before starting, operating, and closing this business is whether it is important for the company to go alone or buy a franchise that already has market penetration, advertising, vibrant software, training, and provide infrastructure for the business. Also, what is essential to consider is whether to directly recruit employees or rely on the recruitment agency that has experience in the logistics business. The other consideration is issues relating to legal and regulatory barriers, particularly in foreign markets (Christopher, 2016).
Conclusion
The world economy is currently being reshaped by various factors, especially technology and so is the production and distribution. The logistics industry is big and vibrant due to increase in demand of products and services all over the world. Therefore, investing in the logistics industry whereby the company provides logistics services, import/export, transportation, and warehousing services seems to be an excellent business idea, whereby the primary focus will be targeting clients that import/export vehicles and heavy commercial machinery between the U.S, Asia, and European countries (Christopher, 2016). The legal framework to start the business in Baltimore, Maryland is available and friendly.








References
Brackman, S. (2016). Taxes in the United States. Hauppauge: Nova Science Publishers, Inc.
Brown, D., Brown, D., & Hoopla digital. (2012). Purchase orders. United States: Simply Magazine.
Cheeseman, H. R. (2016). Business law: Legal environment, online commerce, business ethics, and international issues.
Christopher, M. (2016). Logistics & supply chain management.
Cornish, W. R., Llewelyn, D., & Aplin, T. F. (2010). Intellectual property: Patents, copyright, trademarks, and allied rights. London: Sweet & Maxwell.
Davidson, D. V., & Forsythe, L. M. (2017). Business in the contemporary legal environment.
Fontana, P. K. (2010). Choosing the right legal form of business: The complete guide to becoming a sole proprietor, partnership, LLC, or corporation.
Gorman, M. E. (2010). Trading zones and interactional expertise: Creating new kinds of collaboration. Cambridge, MA: MIT Press.
Laulajainen, R., & Stafford, H. A. (2011). Corporate geography: Business location principles and cases. Dordrecht: Springer.
Licenses & Permits. (2017). Retrieved from http://www.baltimoresourcelink.com/city-of-baltimore-resources/city-of-baltimore-licenses-permits
Management Concepts (Firm). (2003). Types of contracts. Vienna, VA: Management Concepts.
United States. (2008). Employment law guide: Laws, regulations, and technical assistance services. Washington, D.C.: U.S. Dept. of Labor, Office of the Assistant Secretary for Policy.
White, J. J., Summers, R. S., Hillman, R. A., & West Group. (2012). Uniform commercial code. St. Paul, MN: West, a Thomson Reuters business.