**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
  **FORM
        10-KSB**
  (Mark
        One)
 **x**
              **ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934**
  **For
        the fiscal year ended October 31, 2007**
  **o**
              **TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACT
                  OF 1934**
  **For
        the transition period from ___________ to ___________**
  **Commission
        file numb****er 333-141054**
  **LA
        SOLUCION, INC.**
 Exact
        name of registrant as specified in its charter)
  **Delaware**
              **20-3079717**(State
                  or other jurisdiction of incorporation or organization)
              (I.R.S.
                  Employer Identification No.)**7425
                  Brighton Village Dr.**
                **Chapel
                  Hill, North Carolina**
              **27515**(Address
                  of principal executive offices)
              (Zip
                  Code)Registrant’s
                  telephone number, including area code:
              **(919)
                  538-2305**Securities
                  registered under Section 12(b) of the Exchange Act:Title
                  of each class
              Name
                  of each exchange on which registered**None**
              **None**Securities
                  registered under Section 12(g) of the Exchange Act:**Common
                  Stock, par value $.001**(Title
                  of class)
 
 Check
        whether the issuer (1) filed all reports required to be filed by Section
        13 or
        15(d) of the Exchange Act during the past 12 months (or for such shorter
        period
        that the registrant was required to file such reports), and (2) has been
        subject
        to such filing requirements for the past 90 days. Yes x No o
  Check
        if
        there is no disclosure of delinquent filers in response to Item 405 of
        Regulation S-B contained in this form, and no disclosure will be contained,
        to
        the best of registrant’s knowledge, in definitive proxy or information
        statements incorporated by reference in Part III of this Form 10-KSB or any
        amendment to this Form 10-KSB. o
  Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).
 Yes
x No
o
 
 State
        issuer’s revenues for its most recent fiscal year. $0
 
 Aggregate
        market value of the Common Stock held by non-affiliates of the Company as
        of
        December 12, 2007: $0.
 
 Number
        of
        shares of the registrant’s common stock outstanding as of December 13,
        2007: 6,666,000 shares of Common Stock
    1
  **TABLE
        OF CONTENTS**
 
 
 **Part
                  I**Item
                  1.
              Description
                  of Business.
              3Item
                  2.
              Description
                  of Property.
              6Item
                  3.
              Legal
                  Proceedings.
              6Item
                  4.
              Submission
                  of Matters to a Vote of Security Holders.
              6**Part
                  II**Item
                  5.
              Market
                  for Common Equity and Related Stockholder Matters.
              6Item
                  6.
              Management’s
                  Discussion and Analysis or Plan of Operations.
              6Item
                  7.
              Financial
                  Statements.
              8Item
                  8.
              Changes
                  in and Disagreements With Accountants on Accounting and Financial
                  Disclosure.
              19Item
                  8A.
              Controls
                  and Procedures.
              19Item
                  8B.
              Other
                  Information.
              19**Part
                  III**Item
                  9.
              Directors,
                  Executive Officers, Promoters and Control Persons; Compliance with
                  Section
                  16(a) of the Exchange Act.
              19Item
                  10.
              Executive
                  Compensation.
              21Item
                  11.
              Security
                  Ownership of Certain Beneficial Owners and Management and Related
                  Stockholder Matters.
              22Item
                  12.
              Certain
                  Relationships and Related Transactions.
              23Item
                  13.
              Exhibits.
              23Item
                  14.
              Principal
                  Accountant Fees and Services.
              23**Signatures**
              
              24
 
 
 2
  *Except
          as otherwise required by the context, all references in this prospectus
          to "we",
          "us”, "our", “La Solucion”, or "Company" refer to the operations of La Solucion,
          Inc.., a Delaware corporation.*
  **Forward-Looking
        Statements and Associated Risks**
  *The
        Private Securities Litigation
        Reform Act of 1995 provides a "safe harbor" for certain forward-looking
        statements. Some of the statements contained in this annual report of the
        Company discuss future expectations, contain projections of our operations
        or financial condition or state other forward-looking information. Some
        statements contained in this annual report on Form 10-KSB that are not
        historical facts (including without limitation statements to the effect that
        we
        "believe," "expect," "anticipate," "plan," "intend," "foresee," or other
        similar
        expressions) and are forward-looking statements. These forward-looking
        statements are based on our current expectations and beliefs concerning future
        developments and their potential effects on us. There can be no assurance
        that
        future developments affecting us will be those anticipated by us. All comments
        concerning our expectations for future revenue and operating results are
        based
        on our forecasts of our plan of operation and do not include the potential
        impact of any future acquisitions or operations. These forward-looking
        statements involve significant risks and uncertainties (some of which are
        beyond
        our control) and assumptions. Should one or more of these risks or uncertainties
        materialize, or should any of our assumptions prove incorrect, actual results
        may vary in material respects from those projected in the forward-looking
        statements.*
  **PART
        I**
 **Item****1.** **Description of Business.**
  **General**
   We
          were
          incorporated in the State of Delaware in April, 2005. We maintain our statutory
          registered agent's office at the Corporation Trust Center, 1209 Orange
          Street,
          Wilmington, Delaware, 19801, New Castle County. Our registered agent is
          The
          Corporation Trust Company. Our business office is located at 100 Europa
          Drive,
          Chapel Hill, NC 27517. Our mailing address is P.O. Box 3254, Chapel Hill,
          North
          Carolina 27515
  We
          have
          no revenues, have incurred losses since inception, and have limited
          operations.
  **Products
          and Services**
  We
          plan
          to provide assistance to the non-English speaking Hispanic population in
          building and maintaining a life in North Carolina.
  Our
          services will include, but are not limited to, establishing ties and assisting
          its residents by providing services such as language translation and the
          facilitation of the necessary processes and procedures related to banking;
          renting apartments, buying homes, connecting gas, power, water and telephone
          for
          new residences; getting auto, home, and medical insurance; finding doctors,
          real
          estate agents, attorneys, and daycare; registering for classes at local
          schools,
          finding jobs, filling out employment applications; gaining citizenship,
          filing
          tax forms; and buying a car, properly getting a drivers license, tags and
          inspections on automobiles.
  Prices
          for our services will vary based on the individual needs and requirements
          of
          individual clients.
 Getting
        a
        drivers license, finding lodging or work, matriculating the children in schools
        can be an intimidating and sometimes impossible task. Therefore, our company
        name will be La Solucion, which in direct translation means The
        Solution.
  **Industry**
  Based
        on
        2000 Census data, the Hispanic population in the United States has increased
        from 22 million in 1990 to 35.2 million in 2000. According to Migration
        Information Source (www.migrationinformation.org), California, Texas and
        Florida had the largest number of foreign-born Hispanics, however, North
        Carolina, Georgia and Arkansas had the greatest growth in Hispanic population
        between 1990 and 2000. These trends have continued through 2004, and are
        expected to continue into the foreseeable future. According to the NC Division
        of Social Services, the term Hispanic refers to a person who can trace their
        heritage back to any Spanish-speaking country. Since many Hispanic residents
        were not born in the United States and do not speak English, significant
        problems have been noted within the Hispanic communities.
   3
  Based
          on
          these figures, and our established contacts currently in North Carolina,
          we have
          decided to begin our operations in eastern North Carolina. Expansion efforts
          will then take us into Central and Western North Carolina. The total Hispanic
          population in North Carolina grew by 397% between 1990 and 2000, resulting
          in
          nearly 379,000 Hispanic residents in North Carolina at the end of 2000.
          However,
          growth of Hispanic friendly communications and interactions has been slow
          to
          catch on. This isolation from the general public resulted in communities
          that
          were almost completely cut off from  mainstream America, thus allowing
          Hispanics in these communities few opportunities to build a law-abiding,
          healthy
          and productive life in North Carolina. As stated by Steven A. Camarota,
          the
          research director for the Center for Immigration Studies, " Allowing in
          so many
          people from one country and region of the world may significantly slow
          the
          assimilation process by creating the critical mass necessary for linguistic,
          cultural, and residential isolation."
  Currently,
        North Carolina is moving in the right direction to help Hispanics assimilate
        more successfully. There are at least 25 local Spanish language weekly
        newspapers, a variety of Spanish radio stations, and two local Spanish
        television networks. A full time Mexican Consulate opened in Raleigh, North
        Carolina in 2001, and the Administrative Office of the Courts in North Carolina
        secured grants to make the court system more accessible to Spanish speaking
        residents. According to " Voces Nuevas," a publication out of Randolph County,
        North Carolina, businesses and schools are also becoming more Hispanic friendly
        by increasing the number of bilingual employees and by printing many forms,
        documents, and handouts in both English and Spanish.
  Despite
        these advances, language barriers remain an issue for Hispanics trying to
        build
        a life in North Carolina. According to " Voces Nuevas," Hispanics account
        for
        5.9% of all US buying power, and the buying power of Hispanics in North Carolina
        grew by 177% during the 1990' s, yet many Hispanics have trouble spending
        their
        money in North Carolina because many cannot find service providers, and those
        that find service providers often cannot communicate effectively with
        them.
  *
        Many
        Hispanics do not receive proper medical care due to the inability to find
        a
        doctor who can effectively communicate with them and also due to a lack of
        understanding of health insurance. According to www.lasculturas.com, only
        28% of
        Hispanics in the US seek medical care of any kind.
  *
        Many
        Hispanics are not aware of or do not understand state and local laws. According
        to the Burlington Police Chief Michael Gauldin, "One issue is their lack
        of
        knowledge as to things like motor vehicle laws - getting driver's licenses,
        insurance and tags."
  *
        Many
        Hispanics do not have checking accounts due to cultural norms of not trusting
        banks, and due to an inability to properly fill out forms and communicate
        with
        bank employees. According to "Voces Nuevas," Hispanics "avoid banks because
        of
        difficulty communicating in English and a lack of outreach by local banks
        - all
        of which overlay distrust for financial institutions or a total lack of
        experience with banks." RBC Centura has recently launched an initiative in
        North
        Carolina to try to solve some of these problems and integrate the Hispanic
        community into the banking industry.
  *
        Other
        difficulties include finding day care, buying a car, finding a place to live,
        understanding and gaining citizenship and paying taxes.
  **Our
        Operations and Projected Expansion**
  When
        choosing a location for our business, we compiled data from the 2000 census
        to
        determine which North Carolina counties had the highest percentage population
        of
        Hispanics and then grouped those counties by location.
  Based
          on
          the results of these figures, we decided to begin our operations in the
          Wake,
          Durham, Lee and Chatham County area. Our office is located in Orange County,
          and
          our employees will be responsible for going out into the Hispanic communities
          and getting to know people. Hispanics tend to do business with people that
          they
          know and trust, so our initial operations will consist of attending community
          events, getting involved with the communities and informing residents of
          our
          business. Once a clientele base has been established, we will be in each
          community on a weekly basis to handle clients' needs on site and clients
          will
          also be advised to make appointments to come into our offices. A client
          representative will work with each client to determine their needs and
          then put
          together a continuous package of services that will be priced accordingly.
          Clients will also have the option to request single services as needed.
          The
          client representative will be responsible for communicating in Spanish
          with the
          client, determining and documenting all client needs, instructing clients
          on how
          to perform the necessary tasks, and then assisting the client in completing
          the
          necessary tasks. Client representatives will also be responsible for following
          up with each individual task, and maintaining an ongoing relationship with
          that
          client.
  We
        will
        hire client representatives who are bilingual in Spanish and English. We
        prefer
        to hire employees directly from the Hispanic communities that we will be
        working
        with, or who have experience in the fields that we will be working with such
        as
        banking, legal industries, law enforcement, or immigration. Our employees
        will
        be trained to handle all services provided so that each client will have
        only
        one client service representative. Trust is the key to doing business in
        the
        Hispanic community.
  After
        establishing operations in the Wake, Durham, Chatham and Lee County area,
        we
        will then move into areas as indicated in the table and illustration above.
        These areas have been chosen based on population, proximity, and lack of
        competition.
   4
  **Client
        Service Representatives**
  We
        are a
        start up company and currently have no employees. We will be looking within
        local Hispanic communities to find our employees who will need to be bilingual
        in Spanish and English. Many of our employees will potentially join our staff
        upon graduating from high school. According to the Atlanta Journal-Constitution,
        approximately 48% of US Hispanics speak both Spanish and English very well
        and
        according to the North Carolina College Board, over 1,500 Hispanics graduated
        from North Carolina
        high schools in 2002. The number of Hispanic high school graduates in North
        Carolina grew rapidly in 2003 and 2004, and that growth is expected to increase
        further over the next 10 years.
  Initially,
        Mr. Tejeda-Acevedo will perform the duties of office manager and client services
        representative. We will eventually need to hire an office manager and at
        least
        two client service representatives for the Wake, Durham, Chatham and Lee
        County
        area. We project that we may need to hire an additional 2 client service
        representatives within 6 months. Our goal is to hire as many client service
        representatives from local communities as possible. Upon expanding into our
        next
        region, the Duplin and Onslow county area, we plan to use our current office
        manager to initially set up the office and hire employees to staff that office
        location. During Year 2, we plan to expand into at least two more tri county
        areas.
  **Client
        Payment Process**
  According
        to "Voces Nuevas," many Hispanics prefer to do business in cash; therefore
        we
        will adopt operating procedures that allow the acceptance of cash payments
        for
        services. Upon determining the needs of a client, the client services
        representative will inform the client of the cost of services provided. Payment
        will be expected at the time of service. Clients will be billed based on
        an
        hourly fee ranging from $5.15 to $7.00 per hour.
  **Management
        Information System**
  We
        are
        relying on computerized information systems and data management software
        to
        ensure efficiency, timeliness, and correctness in dealing with our clients.
        We
        will also rely on secure computerized networks to ensure ease in our
        communications between employees and clients.
  **Legal
        Concerns**
  Upon
        the
        start of operations, we will work with an experienced immigration attorney
        to
        determine the legalities of working with illegal immigrants and our
        responsibilities in such cases. Our employees will then be instructed on
        the
        proper handling of such cases. We may also keep an immigration attorney on
        retainer to handle any special circumstances that may arise in this
        business.
  **Marketing**
  Our
        marketing practices will center on personal selling and word of mouth. In
        our
        industry, clients want to do business with people that they know and trust.
        Personal selling will be the best way to gain the initial trust of our potential
        clients. Our personal selling will be accomplished by actually going into
        the
        Hispanic communities and getting to know the residents and by becoming involved
        with community activities. Once trust is gained within the Hispanic community,
        word-of-mouth advertising from satisfied clients may well be our best method
        of
        attracting new clients.
  Our
        location in the center of the research triangle area will ensure that we
        will be
        able to have face to face contact with many Hispanic communities.
  **Competition**
  The
        Hispanic assistance industry is relatively new and untapped, leaving many
        opportunities for successful business to be established. In the central North
        Carolina region, we found two web-based organizations currently offering
        services to the Hispanic community. Ayudate (www.ayudate.org) is a
        government funded source of basic information for Hispanics on finding housing,
        education for children, health care, driving information, and other resources.
        The information provided is general at best, and the only way to contact
        a
        person at the office is via e-mail. The web-based nature of Ayudate requires
        access to the Internet, thus eliminating any Hispanic who does not have access
        to an internet connection and e-mail.
  El
        Pueblo
        (www.elpueblo.org) is a 501(c)3 non-profit organization that works in
        cooperation with Ayudate. This organization is more of a political action
        and
        advocacy group for Hispanics. El Pueblo focuses on improving healthcare,
        education, and legislation for Hispanic communities, as well as training
        local
        businesses and organizations in how to be more Hispanic friendly. The El
        Pueblo
        offices are located in downtown Raleigh, making it inaccessible to Hispanics
        in
        many of the surrounding counties where our business will be located. Also,
        the
        web-based nature of El Pueblo requires access to the Internet, thus eliminating
        any Hispanic who does not have access to an internet connection. It is our
        belief that these two organizations will be beneficial to our business as
        opposed to competition.
   5
  In
        Western North Carolina, an organization called Casa Guadalupe uses volunteers
        to
        offer services such as translation, tax assistance, immigration referrals,
        and
        advocacy services for the Hispanic communities. Currently, Casa Guadalupe
        is
        based out of Winston-Salem in Forsyth County, with other offices in Greensboro
        (Forsyth County), and plans to expand to Asheboro (Randolph County). Casa
        Guadalupe sees over 750 people a month in its offices. Again, it is our belief
        that this organization will be beneficial to our business as opposed to
        competition.
  Our
        plans
        to have small offices located throughout county regions in North Carolina
        will
        allow us to quickly involve ourselves in the Hispanic communities located
        in
        those counties. Once relationships are built and a client base is grown,
        it will
        be difficult for other Hispanic assistance businesses to establish themselves
        in
        our markets. Moving quickly from one county region into another and establishing
        trust and relationships with the Hispanic communities will be the cornerstone
        of
        our success.
  **Employees**
  We
        are a
        start up company and currently have no employees other than our officers
        and
        directors.
  **Item
          2. Description of Property**
 
 We
          maintain our statutory registered agent's office at the Corporation Trust
          Center, 1209 Orange Street, Wilmington, Delaware, 19801, New Castle County.
          Our
          registered agent is The Corporation Trust Company. Our business office
          is
          located at 100 Europa Drive, Chapel Hill, NC 27517. Our mailing address
          is P.O.
          Box 3254, Chapel Hill, North Carolina 27515.
 
 **Item
          3.  Legal Proceedings.**
  The
          Company is not  a party to any pending or threatened legal
          proceedings.
 **Item
        4.  Submission of Matters to a Vote of Security
        Holders.**
 
 None.
 
 **PART
        II**
  
 **Item
        5. Market for Common Equity and Related Stockholder
        Matters.**
  **Market
        Information**
 
 Our
          common stock was approved to trade under the symbol “LSLU” on the Over the
          Counter Bulletin Board “OTCBB” in July 2007.  Although our common
          stock was approved to trade to date the stock has not traded.
 
 **Holders**
  As
        of
        December 12, 2007, in accordance with our transfer agent records, we had
        45
        record holders of our Common Stock, holding 6,666,000 shares.
 
 **Dividends**
 
 Holders
        of our common stock are entitled to receive dividends if, and when declared
        by
        the Board of Directors out of funds legally available therefore. We have
        never
        declared or paid any dividends on our common stock. We intend to retain any
        future earnings for use in the operation and expansion of our business.
        Consequently, we do not anticipate paying any cash dividends on our common
        stock
        to our stockholders for the foreseeable future.
 
 **Recent
        Sales of Unregistered Securities**
  None.
 
 **Item
        6.****Management’s
        Discussion and
        Analysis or Plan of Operations.**
 
 *The
        following discussion contains forward-looking statements within the meaning
        of
        Section 27A of the Securities Act of 1933 and Section 21E of the Securities
        Exchange Act of 1934 relating to future events or our future performance.
        Actual
        results may materially differ from those projected in the forward-looking
        statements as a result of certain risks and uncertainties set forth in this
        prospectus. Although management believes that the assumptions made and
        expectations reflected in the forward-looking statements are reasonable,
        there
        is no assurance that the underlying assumptions will, in fact, prove to be
        correct or that actual results will not be different from expectations expressed
        in this report.*
   6
 
 **Overview**
  We
          were
          incorporated in the State of Delaware in April, 2005. We maintain our statutory
          registered agent's office at the Corporation Trust Center, 1209 Orange
          Street,
          Wilmington, Delaware, 19801, New Castle County. Our registered agent is
          The
          Corporation Trust Company. Our business office is located at 100 Europa
          Drive,
          Chapel Hill, NC 27517. Our mailing address is P.O. Box 3254, Chapel Hill,
          North
          Carolina 27515.
  We
          have
          no revenues, have incurred losses since inception, and have limited
          operations.
  **Plan
        of Operation**
 
 We
        are a
        start-up corporation and have not yet generated or realized any revenues
        from
        our business operations. We are not going to buy or sell any significant
        equipment during the next twelve months. We have intended to accomplish the
        foregoing through the following milestones but have not met such milestones
        at
        this time:




1.
              We
                  are contacting respected and successful Hispanic businessmen who
                  are
                  helping us connect directly with potential clients. We will attend
                  trade
                  shows that are oriented towards meeting new clients in these fields
                  such
                  as those annually sponsored by the University of North Carolina
                  in Chapel
                  Hill and similar conferences sponsored by the Raleigh Chamber of
                  Commerce.
                  Once we have completed our private placement we will hire an outside
                  web
                  designer to begin development of the website. As more clients are
                  added
                  and as our customer database expands, we will continue to upgrade
                  the
                  website including testimonials from satisfied clients. It will
                  cost a
                  minimum of $3,000 in order to have our website initially operational
                  and
                  $5,000 to have our database initially ready to receive information.
                  The
                  website is operational and the database is anticipated to be ready
                  within
                  60 to 90 days of obtaining additional capital. Upgrades will be
                  ongoing
                  during the life of our operations.2.
              Our
                  marketing program will include personal selling in conjunction
                  with direct
                  mail and telephone surveys. Our president and CEO Raymond Tejeda-Acevedo
                  is conducting our promotion. He introduces us and our translation
                  features. He gauges interest and opportunity while attempting to
                  gain
                  commitments for our services. Sourcing potential clients consists
                  of
                  telephone surveys and may contain questions that would "qualify"
                  the
                  potential clients. We have devoted $50,000 to our marketing program.
                  Marketing is an ongoing matter that will continue during the life
                  of our
                  operations.


We
          are
          still pursuing this plan but to date we have not been able to raise additional
          funds through either debt or equity offerings. Without this additional
          cash we
          have been unable to pursue our plan of operations and commence generating
          revenue. We believe that we may not be able to raise the necessary funds
          to
          continue to pursue our business operations. As a result of the foregoing,
          we
          have recently begun to explore our options regarding the development of
          a new
          business plan and direction. We are currently engaged in discussions with
          a
          company regarding the possibility of a reverse triangular merger (the “Merger”)
          involving our company. At this stage, no definitive terms have been agreed
          to,
          and neither party is currently bound to proceed with the Merger.
 
 **Results
          of Operations**
  For
          the
          period from inception through October 31, 2007, we had no revenue. Expenses
          for
          the year ended October 31, 2007 totaled $131,340 resulting in a loss of
          $130,302.  Expenses of $131,340 for the year consisted of $79,328 for
          general and administrative expenses and $52,012 for professional
          fees.
  Expenses
          since inception totaled $195,018 resulting in a loss of $189,967. Expenses
          of $195,018 consisted of $118,465 for general and administrative expenses
          and
          $76,553 for professional fees.
 
 **Capital
          Resources and Liquidity**
  As
          of
          October 31, 2007 we had $2,830 in cash for total current assets of $2,830.
          We
          believe we can not satisfy our cash requirements for the next twelve months
          with
          our current cash. We cannot assure investors that adequate revenues will
          be
          generated. In the absence of our projected revenues, we may be unable to
          proceed
          with our plan of operations. Without adequate revenues or obtaining additional
          capital, we do not anticipate being able to continue with our present activities
          and , we will require financing to potentially achieve our profit, revenue,
          and
          growth goals.
  7
  At
        October 31, 2007, we had an accumulated deficit during the development stage
        of
        $189,967.  Since our inception, we have not generated any revenues and
        have minimal cash resources.  These conditions raise substantial doubt
        about our ability to continue as a going concern.  For the
        twelve-month subsequent period, we anticipate that our minimum operating
        cash
        requirements to continue as a going concern will be approximately $150,000.
        We
        do not anticipate the purchase or sale of any significant equipment. We also
        do
        not expect any significant additions to the number of employees. The foregoing
        represents our best estimate of our cash needs based on current planning
        and
        business conditions. The exact allocation, purposes and timing of any monies
        raised in subsequent private financings may vary significantly depending
        upon
        the exact amount of funds raised and our progress with the execution of our
        business plan.
  We
        believe that we will need additional funds to proceed with our business plan
        for
        the development and marketing of our core services. We anticipate that depending
        on market conditions and our plan of operations, we may incur operating losses
        in the foreseeable future. Therefore, our auditors have raised substantial
        doubt
        about our ability to continue as a going concern.
 
 **Recent
        Accounting Pronouncements**
 
 In
          September 2006, the FASB issued SFAS No. 157, “*Fair Value
          Measurements*”. The objective of SFAS 157 is to increase consistency and
          comparability in fair value measurements and to expand disclosures about
          fair
          value measurements.  SFAS 157 defines fair value, establishes a
          framework for measuring fair value in generally accepted accounting principles,
          and expands disclosures about fair value measurements. SFAS 157 applies
          under
          other accounting pronouncements that require or permit fair value measurements
          and does not require any new fair value measurements. The provisions of
          SFAS No.
          157 are effective for fair value measurements made in fiscal years beginning
          after November 15, 2007. The adoption of this statement is not expected
          to have
          a material effect on the Company's future reported financial position or
          results
          of operations.
 
 In
          February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
          No.
          159, “*The Fair Value Option for Financial Assets and Financial Liabilities
–
Including an Amendment of FASB Statement No. 115*”.  This
          statement permits entities to choose to measure many financial instruments
          and
          certain other items at fair value. Most of the provisions of SFAS No. 159
          apply
          only to entities that elect the fair value option. However, the amendment
          to
          SFAS No. 115 “*Accounting for Certain Investments in Debt and Equity
          Securities*” applies to all entities with available-for-sale and trading
          securities. SFAS No. 159 is effective as of the beginning of an entity’s first
          fiscal year that begins after November 15, 2007. Early adoption is permitted
          as
          of the beginning of a fiscal year that begins on or before November 15,
          2007,
          provided the entity also elects to apply the provision of SFAS No. 157,
          “*Fair Value Measurements”.* The adoption of this statement is not
          expected to have a material effect on the Company's financial
          statements.
 
 In
          December 2007, the Financial Accounting Standards Board (FASB) issued SFAS
          No.
          160, “*Noncontrolling Interests in Consolidated Financial Statements – an
          amendment of ARB No. 51*”.  This statement improves the relevance,
          comparability, and transparency of the financial information that a reporting
          entity provides in its consolidated financial statements by establishing
          accounting and reporting standards that require; the ownership interests
          in
          subsidiaries held by parties other than the parent and the amount of
          consolidated net income attributable to the parent and to the noncontrolling
          interest be clearly identified and presented on the face of the consolidated
          statement of income, changes in a parent’s ownership interest while the parent
          retains its controlling financial interest in its subsidiary be accounted
          for
          consistently, when a subsidiary is deconsolidated, any retained noncontrolling
          equity investment in the former subsidiary be initially measured at fair
          value,
          entities provide sufficient disclosures that clearly identify and distinguish
          between the interests of the parent and the interests of the noncontrolling
          owners.  SFAS No. 160 affects those entities that have an outstanding
          noncontrolling interest in one or more subsidiaries or that deconsolidate
          a
          subsidiary.  SFAS No. 160 is effective for fiscal years, and interim
          periods within those fiscal years, beginning on or after December 15, 2008.
          Early adoption is prohibited. The adoption of this statement is not expected
          to
          have a material effect on the Company's financial statements.
  **Critical
        Accounting Policies**
  Our
        financial statements and related public financial information are based on
        the
        application of accounting principles generally accepted in the United States
        (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and
        subjective interpretations of accounting principles that have an impact on
        the
        assets, liabilities, revenues and expense amounts reported. These estimates
        can
        also affect supplemental information contained in our external disclosures
        including information regarding contingencies, risk and financial condition.
        We
        believe our use of estimates and underlying accounting assumptions adhere
        to
        GAAP and are consistently and conservatively applied. We base our estimates
        on
        historical experience and on various other assumptions that we believe to
        be
        reasonable under the circumstances. Actual results may differ materially
        from
        these estimates under different assumptions or conditions. We continue to
        monitor significant estimates made during the preparation of our financial
        statements.
  Our
        significant accounting policies are summarized in Note 1 of our financial
        statements. While all these significant accounting policies impact our financial
        condition and results of operations, we view certain of these policies as
        critical. Policies determined to be critical are those policies that have
        the
        most significant impact on our financial statements and require management
        to
        use a greater degree of judgment and estimates. Actual results may differ
        from
        those estimates. Our management believes that given current facts and
        circumstances, it is unlikely that applying any other reasonable judgments
        or
        estimate methodologies would cause effect on our consolidated results of
        operations, financial position or liquidity for the periods presented in
        this
        report.
  **Off
        Balance Sheet Arrangements**
  We
        have
        no off-balance sheet arrangements.
 
 **Item
        7.  Financial Statements.**




8




**Webb
                  & Company, P.A.**Certified Public Accountants
 
   **REPORTOF INDEPENDENTREGISTEREDPUBLIC ACCOUNTING
        FIRM**
  To
        the
        Board of Directors of: La Solucion, Inc.
  We
        have
        audited the accompanying balance sheet of La Solucion, Inc. and as of October
        31, 2007 and the related statements of operations, changes in stockholders'
        deficit and cash flows for the year then ended. The financial statements
        of La
        Solucion, Inc. for the period April 22, 2005 (inception) to October 31, 2006
        were audited by other auditors whose report was dated January 24, 2007. These
        financial statements are the responsibility of the Company's management.
        Our
        responsibility is to express an opinion on these financial statements based
        on
        our audit.
  We
        conducted our audit in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. An audit includes examining,
        on a
        test basis, evidence supporting the amounts and disclosures in the financial
        statements. An audit also includes assessing the accounting principles used
        and
        significant estimates made by management, as well as evaluating the overall
        financial statement presentation. We believe that our audit provides a
        reasonable basis for our opinion.
  In
        our
        opinion, the financial statements referred to above present fairly in all
        material respects, the financial position of as of October 31, 2007 and the
        results of its operations and its cash flows for the year then ended in
        conformity with accounting principles generally accepted in the United States
        of
        America.
  The
        accompanying financial statements have been prepared assuming that the
        Company will continue as a going concern. As discussed in Note 1to the financial statements, the Company has losses from inception
        of
        $189,967, no revenues and limited capital resources. These factors raise
        substantial doubt about the Company's ability to continue as a going concern.
        Management's plans concerning these matters are also described in Note 1.
        The
        financial statements do not include any adjustments that might result from
        the
        outcome ofthis uncertainty.
   */S/WEBB
        & COMPANY, P.A.*
 WEBB & COMPANY, P.A.
  Boynton
        Beach, Florida December 12, 2007
  1501
        Corporate Drive, Suite 150 • Boynton Beach, FL 33426
 Telephone:
        (561) 752-1721 • Fox: (561) 734-8562
 www.cpawebb.com










9




*Williams
        & Webster, P.S.*
 *certified
        Public
        Accountants & Business Consultants*
 
 La
        Solucion, Inc.
 Chapel
        Hill, NC
 
 **REPORT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
  Wehave
        audited the accompanying balance sheets of La Solucion, Inc. (a development
        stage company) as of October 31, 2006, and the related statements of operations,
        stockholders' equity and cash flows for the year then ended. These financial
        statements are the responsibility of the Company's management. Our
        responsibility is to express an opinion on these financial statements based
        on
        our audits.
  We
        conducted our audits in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform the audits to obtain reasonable assurance about whether the
        financial statements are free of material misstatement. An audit includes
        examining, on a test basis, evidence supporting the amounts and disclosures
        in
        the financial statements. An audit also includes assessing the accounting
        principles used and significant estimates made by management, as well as
        evaluating the overall financial statement presentation. We believe that
        our
        audits provide a reasonable basis for our opinion.
  In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of La Solucion, Inc. as of October
        3
        i, 2006, and the results of its operations, stockholders' equity and its
        cash
        flows for the years then ended in conformity with accounting principles
        generally accepted in the United States of America.
  */s/Williams
        & Webster, P.S.*
 Williams
        & Webster, P.S.
 *Certified
        Public Accountants*
 Spokane,
        Washington
 January
        24, 2007






10












**LA
                  SOLUCION, INC.****(A
                  Development Stage Company)****BALANCE
                  SHEETS**October
                  31,
              
              
              October
                  31,2007
              
              
              2006**ASSETS****CURRENT
                  ASSETS**Cash
              
              $
              2,830
              
              
              $
              109,383Total
                  Current Assets
              
              
              2,830
              
              
              
              109,383**TOTAL
                  ASSETS**
              
              $
              2,830
              
              
              $
              109,383**LIABILITIES
                  AND STOCKHOLDERS' (DEFICIT) EQUITY****CURRENT
                  LIABILITIES**Accounts
                  payable
              
              $
              16,937
              
              
              $
              2,388Total
                  Current liabilities
              
              
              16,937
              
              
              
              2,388**TOTAL
                  LIABILITIES**
              
              
              16,937
              
              
              
              2,388**STOCKHOLDERS'
                  (DEFICIT) EQUITY**Preferred
                  stock, 5,000,000 shares authorized; $0.0001par
                  value; 0 shares issued and outstandingCommon
                  stock, 100,000,000 shares authorized; $0.0001
              
              
              -
              
              
              
              -par
                  value; 6,666,000 and 6,666,000 shares issued and outstanding,
                  respectively
              
              
              666
              
              
              
              666Additional
                  paid-in capital
              
              
              175,194
              
              
              
              165,994Deficit
                  accumulated during development stage
              
              
              (189,967
              )
              
              
              (59,665
              )Total
                  Stockholders' (Deficit) Equity
              
              
              (14,107
              )
              
              
              106,995**TOTAL
                  LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY**
              
              $
              2,830
              
              
              $
              109,383




The
      accompanying notes are an integral part of these financial
      statements.








11




**LA
                  SOLUCION, INC.****(A
                  Development Stage Company)****STATEMENT
                  OF OPERATIONS**From
                  Inception(April
                  22, 2005)Year
                  Ended
              
              
              throughOctober
                  31,
              
              
              October
                  31,
              
              
              October
                  31,2007
              
              
              2006
              
              
              2007**REVENUES**
              
              $
              -
              
              
              $
              -
              
              
              $
              -**EXPENSES**General
                  and administrative
              
              
              79,328
              
              
              
              33,533
              
              
              
              118,465Professional
                    fees
              
              
              52,012
              
              
              
              24,541
              
              
              
              76,553**TOTAL
                  EXPENSES**
              
              
              131,340
              
              
              
              58,074
              
              
              
              195,018**LOSS
                  FROM OPERATIONS**
              
              
              (131,340
              )
              
              
              (58,074
              )
              
              
              (195,018
              )**OTHER
                  INCOME**Interest
                    Income
              
              
              1,038
              
              
              
              4,013
              
              
              
              5,051**LOSS
                    BEFORE TAXES**
              
              
              (130,302
              )
              
              
              (54,061
              )
              
              
              (189,967
              )**PROVISION
                    FOR INCOME TAXES**
              
              
              -
              
              
              
              -
              
              
              
              -**NET
                    LOSS**
              
              $
              (130,302
              )
              
              $
              (54,061
              )
              
              $
              (189,967
              )NET
                    LOSS PER COMMON SHARE,BASIC
                  AND DILUTED
              
              $
              (0.02
              )
              
              $nilWEIGHTED
                  AVERAGE NUMBEROF
                    COMMON SHARES OUTSTANDING,BASIC
                  AND DILUTED
              
              
              6,666,000
              
              
              
              6,691,708




The
        accompanying notes are an integral part of these financial
        statements.
   12
  **LA
                        SOLUCION, INC.****(A
                        Development Stage Company)****STATEMENT
                        OF STOCKHOLDERS' EQUITY(DEFICIT)****For
                      the Period April 22, 2005 (Inception) to October 31,
                      2007**DeficitAccumulatedPreferred
                        Stock
                    
                    
                    Common
                        Stock
                    
                    
                    Additional
                    
                    
                    During
                    
                    
                    TotalNumber
                    
                    
                    
                    
                    
                    Number
                    
                    
                    
                    
                    
                    Paid-in
                    
                    
                    Development
                    
                    
                    Stockholders'of
                        Shares
                    
                    
                    Amount
                    
                    
                    of
                        Shares
                    
                    
                    Amount
                    
                    
                    Capital
                    
                    
                    Stage
                    
                    
                    Equity
                        (Deficit)Balance,
                        April 22, 2005 (inception)
                    
                    
                    -
                    
                    
                    $
                    -
                    
                    
                    
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -
                    
                    
                    $
                    -Common
                        stock issued for cash at $0.0001
                      per
                        share for founder
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    5,000,000
                    
                    
                    
                    500
                    
                    
                    
                    (450
                    )
                    
                    
                    -
                    
                    
                    
                    50Common
                        stock issued for cash at $0.10
                      per
                        share for investors
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    1,974,500
                    
                    
                    
                    197
                    
                    
                    
                    197,263
                    
                    
                    
                    
                    
                    
                    
                    197,460Net
                        loss for the period ended, October 31, 2005
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (5,604
                    )
                    
                    
                    (5,604
                    )Balance,
                        October 31, 2005
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    6,974,500
                    
                    
                    
                    697
                    
                    
                    
                    196,813
                    
                    
                    
                    (5,604
                    )
                    
                    
                    191,906Treasury
                        stock purchased December 13, 2005
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (308,500
                    )
                    
                    
                    (31
                    )
                    
                    
                    (30,819
                    )
                    
                    
                    -
                    
                    
                    
                    (30,850
                    )Net
                        loss
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (54,061
                    )
                    
                    
                    (54,061
                    )Balance,
                        October 31, 2006
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    6,666,000
                    
                    
                    
                    666
                    
                    
                    
                    165,994
                    
                    
                    
                    (59,665
                    )
                    
                    
                    106,995In-kind
                        contribution of services
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    9,200
                    
                    
                    
                    -
                    
                    
                    
                    9,200Net
                        loss
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    (130,302
                    )
                    
                    
                    (130,302
                    )Balance,
                        October 31, 2007
                    
                    
                    -
                    
                    
                    $
                    -
                    
                    
                    
                    6,666,000
                    
                    
                    $
                    666
                    
                    
                    $
                    175,194
                    
                    
                    $
                    (189,967
                    )
                    
                    $
                    (14,107
                    )


The
      accompanying notes are an integral part of these financial
      statements.








13






**LA
                  SOLUCION, INC.****(A
                  Development Stage Company)****STATEMENT
                  OF CASH FLOWS**From
                  Inception(April
                  22, 2005)Year
                  Ended
              
              
              throughOctober 31,
              
              
              October
                  31,
              
              
              October
                  31,2007
              
              
              2006
              
              
              2007**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  loss
              
              $
              (130,302
              )
              
              $
              (54,061
              )
              
              $
              (189,967
              )Adjustments to reconcile net loss to net cash used in operating
                  activities:Increase
                  (decrease) in accounts payable
              
              
              14,549
              
              
              
              (152
              )
              
              
              16,937In-kind
                  contribution of services
              
              
              9,200
              
              
              
              -
              
              
              
              9,200Net
                  cash used by operating activities
              
              
              (106,553
              )
              
              
              (54,213
              )
              
              
              (163,830
              )**CASH
                  FLOWS PROVIDED BY INVESTING ACTIVITIES:**
              
              
              -
              
              
              
              -
              
              
              
              -**CASH
                  FLOWS PROVIDED BY FINANCING ACTIVITIES:**Issuance
                  of common stock for cash
              
              
              -
              
              
              
              -
              
              
              
              197,510Purchase
                  of treasury stock
              
              
              -
              
              
              
              (30,850
              )
              
              
              (30,850
              )Net
                  cash provided by (used in) financing activities
              
              
              -
              
              
              
              (30,850
              )
              
              
              166,660**NET
                  INCREASE (DECREASE)  IN CASH**
              
              
              (106,553
              )
              
              
              (85,063
              )
              
              
              2,830**CASH
                  - BEGINNING OF PERIOD**
              
              
              109,383
              
              
              
              194,446
              
              
              
              -**CASH
                  - END OF PERIOD**
              
              $
              2,830
              
              
              $
              109,383
              
              
              $
              2,830**SUPPLEMENTAL
                  CASH FLOW DISCLOSURES:**Income
                  taxes paid
              
              $
              -
              
              
              $
              -
              
              
              $
              -Interest
                  paid
              
              $
              -
              
              
              $
              -
              
              
              $
              -






The
        accompanying notes are an integral part of these financial
        statements.
   14
 **LA
          SOLUCION, INC.**
 **(Development
          Stage Company)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **OCTOBER
            31, 2007**





**NOTE
        1 – DESCRIPTION OF BUSINESS**
 
 La
        Solucion, Inc. (hereinafter, the “Company”) was incorporated on April 22, 2005
        in the State of Delaware.
 
 The
        principal business of the Company is to provide daily assistance, such as
        facilitation of the processes relating to banking, renting an apartment,
        etc.,
        to the non-English speaking Hispanic population in North
        Carolina.  The Company’s year-end is October 31.
  The
          Company is in the development stage and the Company’s activities during the
          development stage include developing a business plan and raising
          capital.
 **NOTE
        2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
  This
          summary of significant accounting policies of La Solucion, Inc. is
          presented to assist in understanding the Company’s financial
          statements.  The financial statements and notes are representations of
          the Company’s management, who are responsible for their integrity and
          objectivity.  These accounting policies conform to accounting
          principles generally accepted in the United States of America, and have
          been
          consistently applied in the preparation of the financial
          statements.
 
 Accounting
        Method
 The
        Company’s financial statements are prepared using the accrual basis of
        accounting in accordance with accounting principles generally accepted in
        the
        United States of America.
 
 Accounting
        Pronouncements - Recent
 In
          September 2006, the FASB issued SFAS No. 157, “*Fair Value
          Measurements*”. The objective of SFAS 157 is to increase consistency and
          comparability in fair value measurements and to expand disclosures about
          fair
          value measurements.  SFAS 157 defines fair value, establishes a
          framework for measuring fair value in generally accepted accounting principles,
          and expands disclosures about fair value measurements. SFAS 157 applies
          under
          other accounting pronouncements that require or permit fair value measurements
          and does not require any new fair value measurements. The provisions of
          SFAS No.
          157 are effective for fair value measurements made in fiscal years beginning
          after November 15, 2007. The adoption of this statement is not expected
          to have
          a material effect on the Company's future reported financial position or
          results
          of operations.
 
 In
          February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
          No.
          159, “*The Fair Value Option for Financial Assets and Financial Liabilities
–
Including an Amendment of FASB Statement No. 115*”.  This
          statement permits entities to choose to measure many financial instruments
          and
          certain other items at fair value. Most of the provisions of SFAS No. 159
          apply
          only to entities that elect the fair value option. However, the amendment
          to
          SFAS No. 115 “*Accounting for Certain Investments in Debt and Equity
          Securities*” applies to all entities with available-for-sale and trading
          securities. SFAS No. 159 is effective as of the beginning of an entity’s first
          fiscal year that begins after November 15, 2007. Early adoption is permitted
          as
          of the beginning of a fiscal year that begins on or before November 15,
          2007,
          provided the entity also elects to apply the provision of SFAS No. 157,
          “*Fair Value Measurements”.* The adoption of this statement is not
          expected to have a material effect on the Company's financial
          statements.
 15
 **LA
          SOLUCION, INC.**
 **(Development
          Stage Company)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **OCTOBER
            31, 2007**
 
 In
              December 2007, the Financial Accounting Standards Board (FASB) issued
              SFAS No.
              160, “*Noncontrolling Interests in Consolidated Financial Statements
– an
              amendment of ARB No. 51*”.  This statement improves the relevance,
              comparability, and transparency of the financial information that a
              reporting
              entity provides in its consolidated financial statements by establishing
              accounting and reporting standards that require; the ownership interests
              in
              subsidiaries held by parties other than the parent and the amount of
              consolidated net income attributable to the parent and to the noncontrolling
              interest be clearly identified and presented on the face of the consolidated
              statement of income, changes in a parent’s ownership interest while the parent
              retains its controlling financial interest in its subsidiary be accounted
              for
              consistently, when a subsidiary is deconsolidated, any retained noncontrolling
              equity investment in the former subsidiary be initially measured at
              fair value,
              entities provide sufficient disclosures that clearly identify and distinguish
              between the interests of the parent and the interests of the noncontrolling
              owners.  SFAS No. 160 affects those entities that have an outstanding
              noncontrolling interest in one or more subsidiaries or that deconsolidate
              a
              subsidiary.  SFAS No. 160 is effective for fiscal years, and interim
              periods within those fiscal years, beginning on or after December 15,
              2008.
              Early adoption is prohibited. The adoption of this statement is not
              expected to
              have a material effect on the Company's financial
              statements.
  Cash
        and Cash Equivalents
 For
        purposes of the statement of cash flows, the Company considers all highly
        liquid
        investments and short-term debt instruments with original maturities of three
        months or less to be cash equivalents.
 
 Going
        Concern
 As
          shown
          in the accompanying financial statements, the Company had an accumulated
          deficit
          of $189,967 incurred through October 31, 2007.  The Company has no
          revenues and limited cash. Management has established plans to begin generating
          revenues. Management intends to seek additional capital from new equity
          securities offerings that will provide funds needed to increase liquidity,
          fund
          internal growth and fully implement its business plan. These plans, if
          successful, will mitigate the factors which raise substantial doubt about
          the
          Company’s ability to continue as a going concern.  The financial
          statements do not include any adjustments relating to the recoverability
          and
          classification of recorded assets, or the amounts and classification of
          liabilities that might be necessary in the event the Company cannot continue
          in
          existence.
 Revenue
        Recognition
 The
        Company recognizes revenue on arrangements in accordance with Securities
        and
        Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in
        Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue
        is recognized only when the price is fixed or determinable, persuasive evidence
        of an arrangement exists, the service is performed and collectability is
        reasonably assured.
 
 Earnings
        Per Share
 The
          Company has adopted Statement of Financial Accounting Standards No. 128,
          which
          provides for calculation of "basic" and "diluted" earnings per
          share.  Basic earnings per share includes no dilution and is computed
          by dividing net income (loss) available to common shareholders by the weighted
          average common shares outstanding for the period.  Diluted earnings
          per share reflect the potential dilution of securities that could share
          in the
          earnings of an entity similar to fully diluted earnings per
          share.  Basic and diluted losses per share were the same at the
          reporting dates as there were no common stock equivalents outstanding during
          2007 and 2006.
  16
 **LA
          SOLUCION, INC.**
 **(Development
          Stage Company)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **OCTOBER
            31, 2007**
 Fair
        Value of Financial Instruments
 The
        Company's financial instruments as defined by Statement of Financial Accounting
        Standards No. 107, "Disclosures about Fair Value of Financial Instruments,"
        include cash and accounts payable.  All instruments are accounted for
        on a historical cost basis, which, due to the short maturity of these financial
        instruments, approximates fair value at the reporting dates.
 
 Provision
        for Taxes
 Income
        taxes are provided based upon the liability method of accounting pursuant
        to
        Statement of Financial Accounting Standards No. 109, “Accounting for Income
        Taxes.”  Under this approach, deferred income taxes are recorded to
        reflect the tax consequences in future years of differences between the tax
        basis of assets and liabilities and their financial reporting amounts at
        each
        year-end.  A valuation allowance is recorded against deferred tax
        assets if management does not believe the Company has met the “more likely than
        not” standard imposed by SFAS No. 109 to allow recognition of such an
        asset.
  At
          October 31, 2007, the Company had  deferred tax assets calculated at
          an expected rate of 34% of approximately $61,461 principally arising from
          net
          operating loss carryforwards for income tax purposes.  As management
          of the Company cannot determine that it is more likely than not that the
          Company
          will realize the benefit of the  deferred tax asset, a valuation
          allowance equal to the deferred tax asset has been established at October
          31,
          2007.  The significant components of the deferred tax asset at October
          31, 2007 were as follows:
 October
                      31,
                  
                  
                  October
                      31,2007
                  
                  
                  2006Net
                      operating loss carryforward
                  
                  $
                  180,767
                  
                  
                  $
                  59,665Deferred
                      tax asset
                  
                  $
                  61,461
                  
                  
                  $
                  20,286Deferred
                      tax asset valuation allowance
                  
                  $
                  (61,461
                  )
                  
                  $
                  (20,286
                  )
  At
            October 31, 2007, the Company has net operating loss carryforwards of
            approximately $180,767 which begin to expire in the year
            2025.   The change in the valuation allowance for October 31,
            2006 to 2007 was an increase of $41,175.
 Stock-Based
        Compensation
 The
          Company measures compensation costs based on the estimated fair value of
          the
          award and recognizes that cost over the service period.  In accordance
          with Statement of Financial Accounting Standards No. 123 (R), the fair
          value of
          stock options and warrants granted are estimated using the Black-Scholes
          option
          pricing model.  No stock options were granted as of October 31, 2007
          and 2006.
  17
 **LA
          SOLUCION, INC.**
 **(Development
          Stage Company)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **OCTOBER
            31, 2007**
 Use
        of
        Estimates
 The
        process of preparing financial statements in conformity with accounting
        principles generally accepted in the United States of America requires the
        use
        of estimates and assumptions regarding certain types of assets, liabilities,
        revenues, and expenses.  Such estimates primarily relate to unsettled
        transactions and events as of the date of the financial
        statements.  Accordingly, upon settlement, actual results may differ
        from estimated amounts.
  **NOTE
        3 – CAPITAL STOCK**
 
 Preferred
        Stock
 The
        Company is authorized to issue 5,000,000 shares of preferred stock with a
        par
        value of $0.0001. As of October 31, 2007, the Company has not issued any
        preferred stock.
 
 Common
        Stock
 The
        Company is authorized to issue 100,000,000 shares of $0.0001 par value common
        stock.  All shares have equal voting rights, are non-assessable and
        have one vote per share.  Voting rights are not cumulative and,
        therefore, the holders of more than 50% of the common stock could, if they
        choose to do so, elect all of the directors of the Company.
 
 In
        its
        initial capitalization in 2005, the Company issued 6,974,500 shares of common
        stock for a total of $197,510 in cash.
 
 In
        fiscal
        year 2006,  the Company purchased back and retired 308,500 shares of
        common stock for a total of 30,850.
 
 In-Kind
        Contribution of Services
 During
        2007, the President of the Company contributed his services valued at $
        9,200.
 
 **NOTE
        4 – STOCK OPTIONS**
 
 On
        June
        3, 2005, the Company’s board approved the 2005 Equity Compensation Plan to issue
        up to 1,300,000 non-qualified stock options.   As of October 31,
        2007, the Company has not issued any options under the plan.






18




**Item
        8.****Changes
        In and Disagreements
        With Accountants on Accounting and Financial
        Disclosure.**
  On
          November 20, 2007, William & Webster, P.S. (“W&W”) was dismissed as
          independent auditor for the Company.  On November 20, 2007, the
          Company engaged Webb & Company, PA (“Webb”) as its principal
          independent auditor.  This decision to engage Webb was ratified by the
          majority approval of the Board of Directors of the Company.
 The
        Company engaged Webb & Company, PA****(“Webb”) as its new
        independent auditors as of November 20, 2007.  Prior to such date, the
        Company, did not consult with Webb regarding (i) the application of accounting
        principles, (ii) the type of audit opinion that might be rendered, or (iii)
        any
        other matter that was the subject of a disagreement between the Company and
        its
        former auditor as described in Item 304(a)(1)(iv) of Regulation S-
        B.
 
 **Item
        8A.****Controls
        and
        Procedures.**
  **Evaluation
        of Disclosure Controls and Procedures**
  Under
          the
          supervision and with the participation of our management, including our
          principal executive officer and principal financial officer, the Company
          conducted an evaluation of our disclosure controls and procedures, as such
          term
          is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the
          Securities Exchange Act of 1934, as amended (Exchange Act), as of October
          31,
          2007. Based on this evaluation, our principal executive officer and principal
          financial officer have concluded that the Company’s disclosure controls and
          procedures were not effective to ensure that information required to be
          disclosed by the Company in the reports filed or submitted under the
          Exchange Act is recorded, processed, summarized, and reported within the
          time
          periods specified in the Securities and Exchange Commission’s rules and forms
          and that the Company’s disclosure and controls are designed to ensure that
          information required to be disclosed by the Company  in the reports
          that we file or submit under the Exchange Act is accumulated and communicated
          to  management, including our principal executive officer and
          principal financial officer, or persons performing similar functions, as
          appropriate to allow timely decisions regarding required
          disclosure.
 
 As
          part
          of our evaluation of our disclosure controls and procedures as of October
          31,
          2007, management considered the impact of weaknesses in our disclosure
          controls and procedures that were a potential cause for errors.  These
          weaknesses were as follows:
 
 §
                we
                    lacked sufficient accounting
                    personnel;
  The
            Company intends to institute additional policies to improve our disclosure
            controls and procedures. These include but are not limited to:
 
 1)
                  hiring
                      additional full-time accounting personnel to adequately address
                      the
                      deficiencies.
  We
            believe that the implementation of this step and others will allow us,
            in the
            future, to conclude that our disclosure controls and procedures are effective
            to
            ensure that material information is recorded, processed, summarized and
            reported
            by management on a timely basis in order to comply with our disclosure
            obligations under the Exchange Act and the rules and regulations
            thereunder.
 **Change
          in Internal Controls**
 
 Other
          than the matters discussed above, there were no changes (including corrective
          actions with regard to significant deficiencies or material weaknesses)
          in the
          internal controls over financial reporting during fiscal year ended October
          31,
          2007 that have materially affected, or are reasonably likely to materially
          affect, our internal control over financial reporting.
 **Item
        8B.  Other Information.**
  None.
 
 **PART
        III**
  **Item
        9.** **Directors, Executive Officers, Promoters and Control
        Persons; Compliance with Section 16(a) of the Exchange
        Act.**
 
 **Officers
        and Directors**
 
 Each
        of
        our directors serves until his or her successor is elected and qualified.
        Each
        of our officers is elected by the board of directors to a term of one (1)
        year
        and serves until his or her successor is duly elected and qualified, or until
        he
        or she is removed from office. The board of directors has no nominating,
        auditing or compensation committees.
  19
 The
        name,
        address, age and position of our sole officer and director is:
 
 **Name
                  and Address**
              **Age**
              **Position(s)**Raymond
                  Tejeda-Acevedo
              42
              president,
                  principal executive officer,7424
                  Brighton Village Drive
              
              treasurer,
                  principal financialRaleigh,
                  North Carolina 27616
              
              officer,
                  principal accounting officer anddirectorFrancisco
                  Javier Gonzalez
              48
              secretary
                  and director127
                  Cameron Woods Dr.Apex,
                  North Carolina 27523
  The
        persons named above have held their offices/positions since inception of
        our
        company and are expected to hold their offices/positions until the next annual
        meeting of our stockholders.
 
 **Background
        of officers and directors**
 
 Raymond
        Tejeda-Acevedo has served as our president, principal executive officer,
        secretary, treasurer, principal financial officer, principal accounting officer
        and sole member of the board of directors since our inception in April
        2005.
 
 Since
        November 1994, Mr. Tejeda-Acevedo, has been employed by Eaton Electrical
        Inc. in
        Raleigh, North Carolina. Eaton Electrical Inc. is engaged in the business
        of UPS
        Systems Support. Mr. Tejeda-Acevedo has held serveral positions with Eaton
        Electrical since November 1994 and is currently a customer reliability center
        manager and a customer service support manager.
 
 Since
        April 2005, Francisco Javier Gonzalez has been our secretary and a member
        of the
        board of directors. From January 1990, to August 2002, Mr. Gonzalez served
        as
        President of Fiesta International, Inc., a multinational food retail and
        consulting company specializing in the needs of the Hispanic consumer. As
        a
        consultant he has worked with national food distributors and retail chains
        to
        better recognize and prepare a Hispanic food program.
 
 From
        September 1996, to May 2000, Mr. Gonzalez was the President of Tropical Foods
        Inc., which became the largest Hispanic food distribution company in the
        state
        of North Carolina. While under his management, he was able to acquire contracts
        with Winn-Dixie, Piggly Wiggly, Super Kmart and many of the leading supermarkets
        in North Carolina and Virginia.
 
 From
        April 1981, to September 1985, Mr. Gonzalez was responsible for the office
        automation of the Technical Support Department for New Jersey Bell Telephone
        during the critical time of divestiture of AT&T and the Bell companies in
        the mid 1980's.
 
 From
        September 1985 to November 1986, Mr. Gonzalez was a consultant to the New
        Jersey
        Office of Hispanic Enterprise, serving under then Governor Kean.
 
 From
        July
        1984, to December 1988, Mr. Gonzalez was President of Integrity Limousine
        Service, a New Jersey based limousine company and was able to acquire contracts
        with the New York Knicks, New Jersey Nets, New York Giants, Dave Winfield,
        Malcom Jammar Warner, RJR-Nabisco and IBM.
 
 From
        May
        1986, to October 1987, Mr. Gonzalez served as Executive Vice-President of
        Business Development for TSM Inc., a sports management company that pursued
        a
        purchase of an NBA team.
 
 Mr.
        Gonzalez has served on the board of directors for the Greater Raleigh Chamber
        of
        Commerce, Wachovia Bank, The Pan American Games Bid Committee, St. Augustine'
        s
        Celebrity Golf Classic, and IGA.
 
 **Conflicts
        of Interest**
 
 We
        do not
        foresee any conflicts of interest. Further, we have no policies in place
        to
        resolve any future conflicts of interest.
  **Term
        of Office**
  Our
        directors are appointed for a one-year term to hold office until the next
        annual
        general meeting of our shareholders or until removed from office in accordance
        with our bylaws. Our officers are appointed by our board of directors and
        hold
        office until removed by the board.
  20
 **Family
        Relationships**
  There
        are
        no family relationships between the officers and directors.
  **Involvement
        in Certain Legal Proceedings**
  To
        our
        knowledge, during the past five years, none of our directors, executive
        officers, promoters, control persons, or nominees has been:
  •
              the
                  subject of any bankruptcy petition filed by or against any business
                  of
                  which such person was a general partner or executive officer either
                  at the
                  time of the bankruptcy or within two years prior to that
                  time;•
              convicted
                  in a criminal proceeding or is subject to a pending criminal proceeding
                  (excluding traffic violations and other minor
                  offenses);
  •
              subject
                  to any order, judgment, or decree, not subsequently reversed, suspended
                  or
                  vacated, of any court of competent jurisdiction, permanently or
                  temporarily enjoining, barring, suspending or otherwise limiting
                  his
                  involvement in any type of business, securities or banking activities;
                  or•
              found
                  by a court of competent jurisdiction (in a civil action), the Commission
                  or the Commodity Futures Trading Commission to have violated a
                  federal or
                  state securities or commodities
                  law.
 
 **Code
        of Ethics**
 
 We
        have
        not yet adopted a Code of Ethics.
 
 **Compliance
        with Section 16(a) of the Exchange Act**
  Section
        16(a) of the Securities Exchange Act of 1934 requires the Company's officers
        and
        directors, and persons who own more than 10 percent of a registered class
        of the
        Company's equity securities, to file reports of ownership and changes in
        ownership with the Securities and Exchange Commission (SEC). Officers,
        directors, and greater than 10 percent stockholders are required by SEC
        regulation to furnish the Company with copies of all Section 16(a) forms
        they
        file. To the Company's knowledge, based solely on a review of the copies
        of such
        reports furnished to the Company, all reports under Section 16(a) required
        to be
        filed by its officers and directors and greater than ten percent beneficial
        owners were timely filed as of the date of this filing.
  **Item
        10.  Executive Compensation.**
  The
        following table sets forth the compensation paid by us from inception on
        April
        22, 2005 through October 31, 2007, for our sole officer and director. This
        information includes the dollar value of base salaries, bonus awards and
        number
        of stock options granted, and certain other compensation, if any.
 
 **Summary
        Compensation Table**
 **Long-Term
                  Compensation****Annual
                  Compensation**
              **Awards**
              **Payouts****Securities****Other**
              **Under**
              **Restricted**
              
              **Other****Annual**
              **Options/**
              **Shares
                  or**
              
              **Annual****Names**
              
              
              
              **Compen-**
              **SARs**
              **Restricted**
              **LTIP**
              **Compen-****Executive
                  Officer and**
              **Year**
              **Salary**
              **Bonus**
              **sation**
              **Granted**
              **Share/Units**
              **Payouts**
              **sation****Principal
                  Position**
              **Ended**
              **(US$)**
              **(US$)**
              **(US$)**
              **(#)**
              **(US$)**
              **(US$)**
              **(US$)**Raymond
                  Tejeda-
              2007
              0
              0
              0
              0
              0
              0
              0Acevedo,
                  President
              2006
              0
              0
              0
              0
              0
              0
              0and
                  Director
              2005
              0
              0
              0
              0
              0
              0
              0Francisco
                  Javier
              2007
              0
              0
              0
              0
              0
              0
              0Gonzalez,
                  Secretary
              2006
              4,000
              0
              0
              0
              0
              0
              0and
                  Director
              2005
              0
              0
              0
              0
              0
              0
              0
 
 21
   We
        have
        no employment agreements with our officers and directors. We do not contemplate
        entering into any employment agreements until such time as we begin profitable
        operations.
 
 The
        compensation discussed herein addresses all compensation awarded to, earned
        by,
        or paid to our named executive officer.
 
 There
        are
        no other stock option plans, retirement, pension, or profit sharing plans
        for
        the benefit of our officers and directors other than as described herein
        except
        our 2005 Equity Compensation Plan. We have not issued any shares under the
        Plan
        and no options have been granted thereunder.
 
 **Compensation
        of Directors**
 
 Our
        directors do not receive any compensation for serving as members of the board
        of
        directors.
  **Indemnification**
 
 Under
        our
        Articles of Incorporation and Bylaws of the corporation, we may indemnify
        an
        officer or director who is made a party to any proceeding, including a law
        suit,
        because of his position, if he acted in good faith and in a manner he reasonably
        believed to be in our best interest. We may advance expenses incurred in
        defending a proceeding. To the extent that the officer or director is successful
        on the merits in a proceeding as to which he is to be indemnified, we must
        indemnify him against all expenses incurred, including attorney's fees. With
        respect to a derivative action, indemnity may be made only for expenses actually
        and reasonably incurred in defending the proceeding, and if the officer or
        director is judged liable, only by a court order. The indemnification is
        intended to be to the fullest extent permitted by the laws of the State of
        Delaware.
 
 Regarding
        indemnification for liabilities arising under the Securities Act of 1933,
        which
        may be permitted to directors or officers under Delaware law, we are informed
        that, in the opinion of the Securities and Exchange Commission, indemnification
        is against public policy, as expressed in the Act and is, therefore,
        unenforceable.
  **Item
          11.  Security Ownership of Certain Beneficial Owners and Management
          and Related Stockholder Matters.**
 
 The
          following table sets forth certain information regarding the ownership
          of our
          capital stock, as of December 13, 2007, for: (i) each director; (ii) each
          person
          who is known to us to be the beneficial owner of more than 5%of our outstanding
          common stock; (iii) each of our executive officers named in the Summary
          Compensation Table; and (iv) all of our current executive officers and
          directors
          of as a group. Except as otherwise indicated in the footnotes, all information
          with respect to share ownership and voting and investment power has been
          furnished to us by the persons listed. Except as otherwise indicated in
          the
          footnotes, each person listed has sole voting power with respect to the
          shares
          shown as beneficially owned.
 
 Title
                      of Class
                Name
                      and Address of Beneficial Owner
                Amount
                      and Nature of Beneficial Owner
                Percent
                      of Class (1)Common
                    Stock
                Raymond
                    Tejeda-Acevedo
                  127
                    Cameron Woods Drive
                  Apex,
                    North Carolina 27523
                5,000,000
                75.01%Common
                    Stock
                Francisco
                    Javier Gonzalez
                  127
                    Cameron Woods Drive
                  Apex,
                    North Carolina 27523
                0Common
                    Stock
                All
                    executive officers and directors as a group (2)
                5,000,000
                75.01%
 
 (1)The
          percent of class is based on 6,666,000 shares of common stock issued and
          outstanding as of December 13, 2007.
 
  22
 **Item
        12.  Certain Relationships and Related Transactions.**
 
 None
 
 **Item
        13.****Exhibits.**
 
 **Exhibit No.**
              
              **Title
                  of Document**
              
              **Location**3.1
              
              Certificate
                  of Incorporation
              
              Incorporated
                  by reference to Form SB-2 filed on March 5, 20073.2
              
              Bylaws
              
              Incorporated
                  by reference to Form SB-2 filed on March 5, 200731.1
              
              Certification
                  of Chief Executive Officer Pursuant to Rule 13a-14(a) of the
                  Securities Exchange Act of 1934
              
              Filed
                  herewith32.1
              
              Certification
                  of Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
                  as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
              
              Filed
                  herewith
   **Item
        14.****Principal
        Accounting Fees and
        Services.**
  **Audit
        Fees**
  For
            our
            fiscal year ended October 31, 2007 and 2006, we were billed approximately
            $22,122 and $7,500 respectively, for professional services rendered for
            the
            audit and reviews of our financial statements.
  **Tax
            Fees**
  For
            our
            fiscal year ended October 31, 2007 and 2006, we were not billed for professional
            services rendered for tax compliance, tax advice, and tax planning.
  **All
            Other Fees**
  The
            Company did not incur any other fees related to services rendered by
            our
            principal accountant for the fiscal year ended October 31, 2007 and
            2006.
  **Audit
            Related Fees**
  For
            our
            fiscal year ended October 31, 2007 and 2006, we were not billed for professional
            services rendered for audit related fees.
 
 **Pre-approvalPolicy**
 
 Our
            Board
            of Directors has adopted a procedure for pre-approval of all fees charged
            by the
            our independent auditors. Under the procedure, the Board approves the
            engagement
            letter with respect to audit, tax and review services. Other fees are
            subject to
            pre-approval by the Board, or, in the period between meetings, by a designated
            member of Board. Any such approval by the designated member
            is
            disclosed to the entire Board at the next meeting. The audit and tax
            fees paid
            to the auditors with respect to fiscal year 2007 were pre-approved by
            the entire
            Board of Directors.
  23
  
 **SIGNATURES**
  In
        accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
        this report to be signed on its behalf by the undersigned, thereunto duly
        authorized.
  **LA
                    SOLUCION, INC.**By:
                */s/Raymond
                    Tejeda-Acevedo*Raymond
                    Tejeda-AcevedoPresident,
                    Chief Executive Officer,
                  Chief
                    Financial OfficerDate:
                December
                    13, 2007
   
 
 In
        accordance with the Exchange Act, this report has been signed below by the
        following persons on behalf of the registrant and in the capacities and on
        the
        dates indicated.
 
 **Name**
              
              **Title**
              
              **Date***/s/
                  Raymond Tejeda-Acevedo*
              
              President,
                  Chief Executive Officer,
              
              December
                  13, 2007Raymond
                  Tejeda-Acevedo
              
              Chief
                  Financial Officer