...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 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 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 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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...Legal Underpinnings of Business Law Shawn Akey BUS670 Dr. Callaway September 22, 2014 Legal Underpinnings of Business Law During this week, the reading talked about the foundations of business law, including constitutional law as it applies to business, and a comparison of several common business organizational forms. Additionally, various ethical theories were introduced in order to provide perspective to various business outcomes. This paper will deliberate over a scenario raised during the course, concerning a case study on the Tinker & Tailor Home Security Service business and their current legal issues. Along with discussing the scenario, an explanation of each facet of it, as well as provide examples of each as they pertain to the real world will be included. The scenario focused on in this discussion is the creation of a matrix that lists each business, and compares and contrast personal liability exposure as an owner as a result of the lawsuit. For each business entity, analyze how the liability exposure might be limited as an owner. Examine the best business organizational form for the business that might be owned someday in a personal manner. The overall goal will be to show that through the proper manipulation of various legal aspects, exposure to and protection from legal suit can be minimized. The following quote from Jack Kingston sets the stage for the discussion on legal woes of the Tinker & Tailor Home Security business, “Frivolous lawsuits are...
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...A++PAPER;http://www.homeworkproviders.com/shop/acc-561-week-2/ ACC 561 WEEK 2 You are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types. Write a paper of no more than 1,250 words discussing your small-business idea. Include the following: The advantages and disadvantages of the different forms of business organization, which include the following: Sole proprietorship Partnership C corporation S corporation The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity? The following consequences associated with each form of business organization: Tax implications Legal implications Accounting implications, such as SOX, GAAP and FASB An explanation of the unique product or service your small business provides Your choice of business organization form for your new business Your rationale for choosing this form of business organization For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and...
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...Business Organization The first thing to understand when starting a business is how the structure of the company will be set up. There are several types of business entities and each entity has its own particular benefits and list of drawbacks. In this paper I will enumerate the following types of business structures: sole proprietorship, partnership, corporation and limited liability corporation, how they differ from each other, their advantages and disadvantages. Choosing the wrong structure may lead to paying more taxes and putting my personal properties at risk when something go wrong with my business. Being new in the business world, determining the limitations and liabilities of each business entities will guide me in choosing the right business structure that will best fit to my business field, my limitation, protection of my assets and the potential growth of my business direction. My husband and I were planning to start up a café shop. Joe is a coffee lover and I have a passion in baking. So we believe that putting together his love to coffee and my baking passion into a business is a great idea. There are several factors I should take in consideration in choosing the right entity for this business. First I wanted to know the extent of my personal liability, I am also concern how my earnings and profit will be taxed, how much work do it takes in setting the business into operation and how much capital I need to sustain the business. In order to answer these concerns...
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...Business Organization Paper Ruben Valencia HCS/567 Jackie Lucas (Facilitator) November 16, 2014 There are various kinds of business organization in today’s society. Choosing what form of business organization is an important choice because it can be the difference between success and failure when selecting the right type of legal entity your business will use. This paper will address the advantages and disadvantages of the most common legal entities that an entrepreneur has to select from. As an industry develops and matures, it is important to review the business entity to ensure the current form of business organization is tailored to achieve the success of the new entrepreneurial business. Sole Proprietorships The advantages of being the only owner of the business are that the owner has complete control and legal power over the business, and he, or she do not have to share any profits. A disadvantage of a sole proprietorship is the success of the business relies on the knowledge and skills of the owner to be successful expensive (Bruce R. Barringer, & R. Duane Ireland, 2010). Partnership The advantages of being a partnership are that the two owners can crunch ideas and share their resources to raise revenue. The disadvantage of having a connection is that both partners are reliable for the company debt and obligations expensive (Bruce R. Barringer, & R. Duane Ireland, 2010). Corporation...
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...Business Entities, Laws, and regulations Paper Contemporary Business Law/421 Business Entities, Laws, and Regulations Paper Choosing the right business entity is as critical to entrepreneurs as it is to professionals. In the United State, people have the right to chose, from a long list of options, a business entity that will meet their particular needs. Found within that long list of options are two business entities that have met the needs of many entrepreneurs as well as professional. These two business entities, known as Limited Liability Company (LLC) and Limited Liability Partnership (LLP), have forming, control, taxation, and liability components, which must be fully understood in an effort to identify their advantages as well as their disadvantages. The Restaurant and Sports Bar Lou and Jose are entrepreneurs that want to open an establishment that will offers its patrons a place to dine, while they watch their favorite sports teams in action. Although Lou and Jose have an abundance of drive and ambition, they lack the required capital to open the business. Miriam, a wealthy investor, is interested in providing that needed capital in return for a percent of ownership in the business. Since Lou and Jose are more than willing to take on the day-to-day issues of running a business, a limited liability company (LLC) might just proof to be the best type of business entity for the three of them. Limited Liability Company A limited liability company (LLC)...
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...If you are going into business, the smart move is almost always to form a business entity to protect you from lawsuits. If you take this step, you need to get a tax identification number for the entity. Let's face it. There is a certain amount of legal risk if you go into business for yourself. You need only watch the news or read the paper to see all kinds of scary lawsuits and judgments. Hey, we all remember the jury that awarded three million dollars to the women who said her McDonalds coffee was to hot. If that doesn't scare you, nothing will. Fortunately, the law also gives you some ammunition to fight back against potential lawsuits. The ammunition comes in the form of business entities that protect you from personal liability for the debts of the business. These debts include lawsuit judgments....
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...and Regulation Paper 2 Business Entity Laws and Regulation Businesses require some research on licensing, state laws and regulations in order to get started. It also requires looking into the business entities, taking control, taxation, and taking liability issues into consideration. It is important for business to be able to protect itself from many things within the business laws regulation. Within this paper, an extermination business, a restaurant bar business and a construction scenario will be discussed based on the requirements of stating a successful business. Extermination Business: Frank, a wealthy investor who plans to open a chain of exterminating businesses across the United States is a Sole Proprietorship. Being a wealthy investor places him the position to provide all of the financial funding that would be required for his exterminating business up front. Frank will also be able to provide his own funding when he begins to expand the organization. Frank will receive all of the profits from his business, because he will be taking all of the risks, Frank will be able to be as flexible as he chooses, because he will be making all the decisions. He will decide upon everything from the name of the company to what the days and hours of the operation will be for his business. Because Frank is a Sole Proprietor he does not have to worry with compromising with other partners who may not agree with Frank’s decisions. Whatever Frank says must be done, because...
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...Final Paper Proposal James Collier BUS311: Business Law I Instructor: Daniel Malvin 9-1-2014 A sole proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC). The owner of the Acme Firework is a sole proprietor that has never changed his business entity. A sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions. Product liability laws cover consumer goods and goods used at a workplace. If someone is injured by a defective product or suffers loss or damage to private property, they can sue for damages. Both producers and distributors can also face prosecution if they offer unsafe products for sale. When a defective product causes injury, the manufacturer of the product, the distributor, the wholesaler and the retailer who sold the product may all be liable to the plaintiff. Several large retailers have sent inquires about the company’s ability to fill large orders on a regular basis, but the owner is anticipating he will need new employees and is worried that he will not be able to pay the employees if the large orders do not continue. The owner will have to consider a business entity because the company is going to grow with more employees and workloads. To get the most out of a small business, a company...
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