Business Entities As obstetricians going into business together, Akiva and Tara would likely want to file as a Limited Liability Partnership. Most states permit certain professionals such as accountants, lawyers, and doctors to operate as LLPs. LLPs and LLCs combine the most favorable attributes of general partnerships, limited partnerships, and corporations. LLPs are taxed as partnerships unless they choose to be taxed as a corporation. Akiva and Tara would benefit from paying taxes as a partnership because partnerships are not taxed at an entity level but rather through a system of “flow- through” taxation. This form of taxation allows members to avoid double taxation by paying taxes only on their individual income. LLPs also offer legal liability protection. Partners are limited partners who stand to lose only their capital contribution if the partnership fails. Partners are not personally liable for the debts and obligations of the partnership beyond his or her capital contribution. Also an LLP can designate in its articles of organization as member-managed or manager-managed. In a member-managed LLP, the members share the responsibility of managing the company. In a manager-managed LLP, members designate managers to manage the LLP. When members designate a manager or managers, members no longer have the right to manage the LLC. However, a manager may be a member or nonmember of the LLC. When Akiva and Tara establish their birth clinic, they will first need to find Workers’ Compensation Insurance. Depending on which state they will establish their business, Akiva and Tara may have the option to purchase workers’ compensation insurance from a private company or self-ensure themselves if they can prove that they are capable of paying workers’ compensation claims (Cheeseman, 2010). However, because they are in the beginning of their venture, they will not likely be approved for the self-ensure option, which leaves only the option to purchase from a private company. Akiva and Tara will also need to follow guidelines established by the Occupational Safety and Health Administration (OSHA). According to Cheeseman (2010), “OSHA is empowered to adopt rules and regulations to interpret and enforce the Occupational Safety and Health Act. OSHA has adopted thousands of regulations to enforce the safety standards established by the act.” OSHA has set Specific Duty Standards pertaining to the medical field that require careful consideration when choosing the placement of machinery, proper disposal and storage of hazardous materials, and clearly stated safety procedures for employees. To help avoid civil and criminal penalties they will need to ensure they remain abreast of any changes or updates to OSHA’s regulations and guidelines. Construction Scenario The construction company Surebuild, Inc. should form a Limited Liability Company. Surebuild will file articles of organization with the state of residency. Limited liability companies fall under the governance of individual state regulations and statutes. Some states allow sole proprietors to form an LLC. Surebuild as an LLC will be able to use the advantageous aspects of a corporation, general partnership, and limited partnership in one entity. Surebuild as an LLC will decide whether the company pays taxes as a partnership or a corporation. The majority of organizations find it advantageous to be taxed as a partnership (Cheeseman, 2010). The company owners decide the organizational structure of the LLC. The owners of an LLC can manage the company (member-managed) or the owners can hire someone to manage the company (manager-managed) (Cheeseman, 2010). The LLC owners may enter into an operating agreement. An operating agreement provides the basis of the operational hierarchy, conduct, relationships, and other various components of the organization. The LLC is liable for the wrongful acts of members in the course of ordinary business. Members are not personally liable for the LLC’s obligations. However, an individual of an LLC regardless of position are liable for intentional wrongful acts both criminal and civil. Starting a business requires consideration of certain rules and regulations. A business must obtain specific permissions and licensing according to the state or country of registration. Businesses must also decide what type of business entity to become. This distinction alone will reflect what type of market or income the business may produce. Upon finding representation for hiring, a company must also abide by the rules and regulations governing immigration laws of employers and employees. The jack hammer operator position is a job understood to be potentially dangerous. As hiring manager for Sure Build inc. Mei-Lin must take certain precautions to protect her future employees and her company by adhering to the rules and regulations of the area in which they work. States often require that companies purchase insurance from a private company to cover potential compensation claims filed by employees. This type of insurance is known as Workers Compensation Insurance. Mei-Lin must also want to keep in consideration the Occupational Safety and Health Act enforced buy the OSHA. In general the rules and regulations of the company should also coincide with business Common Law. Surebuild, Inc. must comply with employment regulations and laws. According to the equal opportunity employment commission, Mei-Lin cannot discriminate against Nick, who is a college student with epilepsy, or Michelle who is qualified but pregnant. This commission is a national organization that enforces the majority of antidiscrimination laws (Cheeseman, 2010). Unfortunately, because the position calls for a high school diploma the skilled Eric and Felipe will not qualify to be a jackhammer operator for Surebuild, Inc. However, if Felipe had a high school diploma and was a qualified to operate a jackhammer but Mei-Lin did not hire him because he doesnt not speak English, Felipe could sue Surebuild, Inc. for discrimination. It was not specified in the job description speaking English was a requirement. The Employment Opportunity Commission could file a complaint with the company. In 2007, Walgreens was sued for $24 million for discriminating against African American pharmacists and retail managers regarding assignments, compensation, and promotions (Cheeseman, 2010). Mei-Lin’s best options would be to hire either Nick or Michelle or both. If Nick or Michelle are hired Surebuild, Inc. must obey the Fair Labor Standard Act, workers’ compensation, and Occupational Safety and Health Act (Cheeseman, 2010).

References Cheeeseman, H. R. (2010). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory, and International Issues (6th ed.). Retrieved from The University of Phoenix eBook Collection database.