...Business Entities, Laws, and Regulations Paper When an individual or group of individuals decided to open a business there are many choices that will need to be made about what type of business they will want to work toward. First an entity for the company will need to be chosen. This entity will help decide how each individual will be held responsible for the business as well as liability issues and taxation procedures. Control of the business will also be a factor when choosing a particular entity. We will be focusing on two different scenarios and need to decide what type of entity the company needs to choose. Liability as well as rules and regulations will need to be taken into account so that the business will not only profit but will be safe from many risks that can occur when operating a business. The last scenario will discuss what rules and laws a company must abide by when hiring individuals. We will take in to account that this is a new construction company that will be looking for a certain individual to hire for the new position. Restaurant/Bar Scenario In this scenario we have two individuals, Lou and Jose that want to open a sports bar complete with large TV’s to entice customers to come in a watch many sporting events. The bar would serve alcohol and would offer food to their customers. They however do not have much money so another individual Miriam has agreed to invest money into the company for a part of the ownership, but does not want to have...
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...Business Entities, Laws, and Regulations BUS/415 Business Entities, Laws, and Regulations The first business I chose was the extermination business. Frank is a wealthy investor that wants to open a chain of exterminating businesses across the United States. Because no one else has set up the business except for Frank, he is the sole proprietor of the business, or in this case, chain of businesses. He would have the ability to make all management decisions himself. He would also receive all of the business’ profits as sole proprietor of the business chain. This would be the best option for Frank to open his chain of businesses. The second business was that of the birth clinic that Akiva and Tara want to open together, jointly taking on a large loan to handle the startup costs for the business. Since they are the only partners in the business venture, and they are taking equal personal responsibility in the loan that is being taken out for the startup costs of the business, their business is more closely associated with a general partnership. Both partners are personally liable for the debts and obligations of the business and are equal partners in the profit share that comes from the business. The laws and regulations that both businesses would have to consider when opening the business chain are the workers’ compensation laws, the Occupational and Safety and Health Act, which regulates the occupational safety at the locations that he plans to open...
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...Business Entities, Laws, and Regulations BUS-415 11/13/11 Lester Bovia Business Entities, Laws, and Regulations Scenario #1 Restaurant Bar: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they have Miriam, a wealthy investor who does not have time to participate in the business, but wants to provide capital to start the business in return for a percentage of ownership. Three people, Lou, Jose, and Miriam want to go into business together. They plan to open a sports bar/restaurant. The facility will offer a place for people to socialize, eat, drink, and watch sports. Lou and Jose have the skills to open and run such an adventure, but have little capital. However, Miriam is wealthy and willing to fund the project for a percentage of ownership. In this scenario, the group must decide the best business entity taking into consideration control, taxation and liability issues. This business venture is small in nature but has high liability risk. People, alcohol, and sports mixed together can be volatile; therefore the business owners should consider a partnership that limits their own personal liability. A limited liability company combines the most favorable attributes of general partnerships, limited partnerships, and corporations (Cheeseman, 2010). The formation of an LLC requires the company to include LLC (in some form or fashion)...
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...Business Entities, Laws, and Regulation Danielle Carter BUS 415 March 19, 2012 Frank Poe Introduction For many companies to experience success, they should be able to come up with the experienced essential that will help them operate their businesses in the well-organized way as possible. Furthermore, there are ultimately three things that many companies need to pay attention of, for instance, taking control, liability and taxation issues. No business can ever be successful if they do not learn to stand by the rules or laws set that is exactly for their nature of business, and at the same time be understanding of the likely risks that are involved in their decisions. The construction company also needs to be aware of the laws governing employment and should also stand by them when beginning their business. Restaurant/Bar Scenario The investors of the restaurant/bar are Miriam along with Lou and Jose. Among the three, Miriam is known to be a wealthy investor and do not have time to participant in all the business transactions and would only choose to just receive his share from the percentage of ownership. Since this is the kind of business that is started by three owners, it should be created within a limited partnership. Cheeseman (2010) assertion is that the partnership should file a document stating their information return as well as their income information such as the amount they earn and lose from the partnership. Since Miriam is too busy, it is on the...
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...Business Entities, Laws, and Regulations Business Entities, Laws, and Regulations Regardless of the type of business to be opened, an entrepreneur should have a sound business plan, patience, motivation, and time. It takes knowledge of current laws and understanding of regulations that protect new business owners and their counterparts alike. Some employment laws vary state-to-state and some are federally regulated; however, it is up to a new business owner to not only learn these laws but to familiarize themselves with them to ensure compliance. Restaurant/Bar “Lou and Jose plan to open a sports bar and restaurant but they do not have much money. Miriam is a wealthy investor who does not have time to work the business; however, she wants to provide funds for the start-up of the business. In return, Miriam wants a percentage of ownership” (University of Phoenix, 2010). Business Entity A limited liability partnership is the best choice of business entity for Lou, Jose, and Miriam. Jose and Lou will control and manage the business while Miriam is the investing partner and will act as a limited partner. According to the IRS, “a partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business” (IRS, 2012). Control. A written partnership agreement is not required by law; however, it is a way for partners to...
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...they must take into consideration taking control, taxation, and liability issues when starting their business. Each company will have to make decisions as it deals with employment laws and regulations, as well as identifying risk that may arise while they begin to conduct business. Restaurant/Bar Scenario Lou and Jose plan on opening a sports bar and restaurant with help from Miriam. The pair, Lou and Jose, has little start up money and Miriam is willing to invest into their business. Miriam will provide the capital needed in order for them to start their business. Miriam is exchanging his/her investment for partial ownership into the business based upon a percentage. The three of them combined will form a general partnership with all three of them owning the business. Lou and Jose would be the managing partners while Miriam is considered an investing partner since he/she wants to invest without doing much else when it comes to the day to day business at the bar/restaurant. Miriam will allow Lou and Jose to control the business and they all share the businesses profits. This type of general partnership can be determined if the group meets the criteria which has been broken down into four categories. The four categories are; 1. It must be an association of two or more people. 2. These people must be carrying on a business. 3. They must be co-owners. 4. The business must be for profit. Lou, Jose, and Miriam are co-owners of a bar/restaurant for profit, which makes...
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...Business Entities Businesses are faced with many legal challenges in various stages: establishment, management, and dissolution. In two of following scenarios the legal aspects of establishing, maintaining and dissolving a partnership companies are identified. In the last scenario, the legal aspects of hiring a new employee are investigated. Restaurant/Bar Lou, Jose, and Miriam should create the business as a limited partnership. A limited partnership consists of one or more general partners and one or more limited partners. General partners manage the business and take personal liability for debts. Limited partners provide capital and are personally responsible for debts up to his or her investment in the company but are not involved in the management of the business. Lou and Jose who will be managing the business’s activities would be the general partners. Miriam who is providing the financial backing but will not be making daily business decisions would be the limited partner. According to the Revised Uniform Limited Partnership Act (RULPA), in order to begin their limited partnership, Lou, Jose and Miriam will need to create and sign a certificate of limited partnership (Cheeseman, 2010). In the state of Colorado, the group will need to create a name for the partnership that must contain either the word or abbreviation for limited partnership or company (State of Colorado, 2008). The document must also provide the address of the business, the type of business, an agent...
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...Business Entities, Laws, and Regulations Paper LAW/421 Business Entities, Laws, and Regulations Paper According to Melvin (2011) all business ventures operates as a legalized form of business entity. When owners and managers of a business have knowledge of the structure, advantages and risk that each form of business entity involved then business for this particular group, will more effective at concentrating on business opportunities and taking advantage of them while limiting potential liability. These paper will giving examples of three different scenarios where owner have specific plans for each business and of these examples the fallowing step will be touch: a) the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration; (b) identify laws and regulations each particular business must consider in starting the business; and (c) identify risks against which each particular business must protect itself. Restaurant/Bar Business Scenario Restaurant/bar business: Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam, a wealthy investor who does not have time to participate actively in the business, but wants to provide capital to start the business in return for a percentage ownership. According to Melvin (2011) Limited Liability Partnership...
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...Business Entities, Laws, and Regulations Business Entities, Laws, and Regulations Two start-up businesses in different industries are beginning and an established company with labor issues are the focus of this paper. For the two start-ups, a sports bar and a birth clinic, a case needs to be made for the type of business entity they should each use. The established company is a construction company whose business entity must be identified and employment law pertaining to the scenario will be discussed. For each business, identification of the best business entity for the given situation needs to be accomplished first. The decision of the type of business entity will take into consideration control, taxation, and liability issues. Review of the laws and regulations that each ownership group must consider and identification of risks that the businesses should protect against will be discussed. Review of the construction company’s business structure and how it affects control, taxation, and liability issues along with how employment law impacts the current scenario is focused on. In examining the sports bar identifying the ownership structure and control issues will determine of the proper business entity be used. Below is the information provided for this business: “Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large-screen TVs that hang around the bar. They do not have much money, but they do have Miriam,...
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...Business Entities, Laws and Regulations Paper The following paper will discuss two hypothetical businesses and the organizational structure that presents the best choice for each business with consideration for control, taxation, and liability issues. It will address the laws, regulations and risks each business must face. The paper will also include a discussion of a hypothetical situation in which a hiring manager must choose an applicant while considering laws, regulations, and the risks against which the business must protect itself when making the decision. Professional Practice Akiva and Tara are newly licensed as obstetricians and want to open a birth clinic together. They will need to take out a large loan to finance their start-up costs. Akiva and Tara would be best served by creating a limited liability partnership (LLP) to organize their business. By forming the LLP, the partners protect themselves from liability beyond their initial capital contribution should the partnership fail or face a lawsuit (Cheeseman, 2010). Members of an LLP are also not personally liable for the malpractice of one partner, and states require LLPs to carry substantial liability insurance in exchange for this limited liability. The limited liability protects Akiva and Tara from being held personally liable for the loan they will take out should the business become insolvent. Forming an LLP ensures that Akiva and Tara retain control of their business because they are the only shareholders...
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...Business Entities, Laws, and Regulations Paper David Bell BUS 415 March 12, 2012 Eric Nord Business Entities, Laws, and Regulations Paper Starting a business is not an easy task, regardless of what type of business that is being started. It would be foolish to be naive of the amount of work that has to be put into create a successful business. To step into the business world on the right foot, it is imperative to create a well designed business plan. This business plan must cover all areas including the companies plan to protect against lawsuits. The law can affect a company just as much as it can affect each member of the company. With a well designed business plan, the company will be better able to prevent legal situations. Restaurant/Bar For Lou and Jose, opening a sports will be no easy task. They do not have the money themselves, but fortunately have the services of Miriam. Miriam is a wealthy investor who does not have time to become active in the company but is a willing investor. The type of business that best fits their sports bar would be a partnership. “A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business (" Partnerships," 2012). Lou, Jose, and Miriam make up the partnership, but Lou and Jose will have control of the direction of the business. Miriam is just apart of the business...
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...Business Entities, Laws, and Regulations Paper University Of Phoenix Business Entities, Laws, and Regulations Paper Successful management of a business entity is dependent on understanding industry structure, taxation, laws, regulations, risks, motivation, and a business plan. The business structure will affect profits, business liability, and taxes. A sole proprietorship, an LLC, or corporation, requires research and planning to determine which structure is right for a business. Equally important is development of a good business plan. The business plan will provide industry insight to important aspects of a business. Understanding local, state, and federal business laws and regulations will assist in identifying risks and provide information to protect or minimize the outcome of litigation or failure. Lou and Jose are planning to open a sports bar and restaurant but they lack the startup cash to do so. A wealthy investor named Miriam, has agreed to provide working capital to fund the startup and establishment of the business. In return for investing her money into the business, she wants a percentage of the company. The structure that is appropriate for the business is a member-managed LLC with Lou and Jose as the designated manager and Miriam as the non-manager. Lou and Jose will manage day-to-day business, whereas, Miriam has no control, unless otherwise provided in the operating agreement (Cheeseman, 2010). An LLC (limited Liability Company) is a tax chameleon, which...
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...Business Entities, Laws, and Regulations The purpose of the paper is to review the restaurant/bar and extermination businesses and discuss the entity that best suits the business. I will also review the construction scenario and discuss if Surebuild is in violations of any employment laws. An entrepreneur’s main goal is to manage a successful business and also to protect his or her investments. After making a decision to start up a business the next crucial step is to decide on what type of entity is best suited for my business and below are the various options available to choose from. Sole proprietorship The owner of the company has the absolute power, and the business is not a legal separate entity. He or she has the rights to profits earned from the business, unlimited liability for debt incurred, has minimal liability protection, and can easily sell or transfer his or her business without any additional approvals. General partnership/Limited liabilities partnership Occurs when two or more people decide to go into business together as co-owners for a profit. When entering into a partnership there are certain rights and duties included in the partnership agreement as well as by the law. General partners are also personally liable for debts/obligations associated with the business as well as have rights in how to carry out the business. General partners invest his or her capital, help manage the company, and are also personally liable for debt. Limited partners...
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...Business Entities, Laws, and Regulations Paper BUS/415 Professional practice Tara and Akiva have just got their licenses in obstetrics and are looking to open a professional practice. They will be a new company and will have to be a member managed LLC. This will protect them from being liable if there are any accidents in the future. Since their business has to do with medicine, they are going to need particular protection from liability issues that might come up. For example, one consequence of any problems could be a threat to the health of mother and child, and not following correct procedures could cause accidents, and then lawsuits. They have licenses which are based on their knowledge of the legal and illegal practices. They are going to have to train all of their employees to make sure they know the proper practices as to not injure any of their patients. If the business is ethical and morally sound, and also follows all of the medical laws, they will get a lot of mothers as patients. Restaurant/Bar Miriam, an investor with a lot of money, but very little time on her hands, will finance a restaurant/bar that Lou and Jose will open. The owners of this company are Lou, Jose, and Miriam. The bar should be run in a limited partnership. According to Cheeseman, H.R. “A partnership has to file an information return with the government, telling the government the amount of income earned or losses incurred by the partnership...
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... August 08, 2010 Restaurant/Bar Scenario Business Entity, Control, Taxation and Liability As per the scenario, Lou and Jose plan to open a sports bar and restaurant, the best business entity choice for this restaurant and sports bar is the partnership firm because Lou, Jose and Miriam are the three persons who want to start the business in return for a percentage of ownership. Lou and Jose will take care of business operations and Miriam will invest money. Miriam will allow to Lou and Jose to keep control on business activities by sharing profit with them, so it would be considered as the partnership firm (The General Partnership, 2010). In a partnership firm the all the business decisions are taken by the conformance of all the partners. In this scenario, Lou and Jose are the main controllers and their partnership is general partnership but Miriam would not have any control because he is giving money in to earn profits only (Liability for partnership debts, 2010). According to the taxation policy of USA, in a partnership firm the tax will not incur on profit before distributing to the partners. In partnership business entity, the tax would be paid by the individual partners after distributing the profit among them (The General Partnership, 2010). According to the common law, in this partnership business entity, the liability of Lou and Jose is unlimited for the business organization because they will manage all the activities and...
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