Business Entities, Laws, and Regulations Paper
University of Phoenix
August 13, 2011
Business Entities, Laws and Regulations
Once they have decided to start their own business they will have to carefully consider the rules and regulations that will apply to their business to ensure success. In this assignment we will discuss how two new business entities should be created and the issues that should be carefully considered to make the business a success. We will also examine another business hiring practices and compliance.
Lou and Jose Sport Bar and Restaurant
Lou and Jose want to open a Sport Bar and Restaurant where sports fans within the areas can come and have a good time. There is one major problem to accomplish their plans; they do not have the resources to fund their project. Miriam a wealthy investor goes to Lou and Jose and tells them she is willing to invest in the Sport Bar and Restaurant but wants to remain a silent partner and to receive a return on the money she invested.
Lou and Jose needs to come up with a name for their potential business and register it with the state they are opening the business in. There next step is to find a suitable location, and receive the required permits within that state. Lou and Jose will have to decide on their role within the business and the duties each will be responsible for. Once they have accomplished what is required, they can now apply for their employer identification number.
The next process in getting the business started is to employ a lawyer to handle the business and tax guidelines for employees and taxes required by the state. Lou and Jose must have their food and liquor licenses before they can open to the public.
Lou and Jose needs to consider the risk in their business, such as serving alcohol to minors and serving alcohol to customers who has had more than enough to drink already. They will need to obtain liability insurance to protect their business from any lawsuits. Miriam who is a silent partner in the business will not be held liable in case a lawsuit arises.
The Restaurant and Sports Bar will be created as a limited liability limited partnership. This is ???a special type of limited partnership that has both general partners and limited partners, where both the general and limited partners have limited liability and are not personally liable for the debts of the LLLP??? (Cheeseman, 2010). Lou and Jose did not have the capital to start this business but are able to manage the business once they found someone to fund it. Miriam has agreed to fund the business once she remains a silent partner. This business entity will allow the guys to manage the daily activities of the business while all three will reap the benefits of the profits. With this type of entity the partners are not liable any debts or obligations to the business.
Professional Practices: Akiva and Tara
Akiva and Tara are planning on opening a birth clinic. The first thing they need to do is to create a name for the clinic and register with the state. They need to apply for Employer Identification number, this is used for tax related purpose and employment matters. They will be required to register for tax identification number, unemployment insurance tax and sales tax. In some state it is a requirement for business owners to register for Occupational Business Tax license. Before Akiva and Tara can open there clinic they will need a zoning permit and acquire an amount of doctors with medical licenses.
A one major risk Akiva and Tara need to consider with their line of work is medical malpractice. ???Medical malpractice occurs when a medical care providers negligence, error or omission causes the injury or death of a patient??? (McElrath, 2011). Akiva and Tara will need a general liability insurance to open the clinic to cover any injuries that may arise. They will need the necessary insurance to protect them against property, employment liability, and workers compensation.
Akiva and Tara are planning to open a birth clinic that will be created as a general partnership. ???General Partnership is an association of two or more persons to carry on as co-owners of a business for profit??? (Cheeseman, 2010). Creating this type of partnership for the business will allow the ladies to manage the day-to-day operations of the business based on their education and experience. They will be applying for a loan and sharing all of the responsibilities and expenses to maintain the business.
Surebuild, Inc.
Surebuild, Inc. is a new construction company in need of a jackhammer operator, the only requirements for this position is a high school diploma, which we have received four applicant.
???The Equal Employment Opportunity Commission enforces federal laws prohibiting employment discrimination??? (EEOC). A person cannot be discriminated against race, color, nationality, religion, sex, pregnancy, age, and disability.
Michelle, who is 35, has a high school diploma and also has experienced as a jackhammer operator and is also pregnant. Operating a jackhammer could harm her pregnancy, but by not selecting she to be interviewed because of her pregnancy would appear as discrimination and that we are violating the Civil Rights act. Because of the nature of the job, which is operating a jackhammer, the employer cannot make any adjustments that will allow Michelle to perform her job and protect her pregnancy. If the company decided to hire Michelle this could cause the company to suffer undue hardship with actions for workers compensation claims.
Eric is 55 years of age and has experience with a jackhammer, but does not have the requirements of a high school diploma. Eric can be denied the job simply because he lacks a requirement that is not covered by the Civil Rights Act. The Civil Rights Act does have stipulations that give people over the age of 40 protections, called The Age Discrimination Act. If Eric had a high school diploma but felt he was discriminated against for age, he could cite the Act for age discrimination.
Felipe is 38, speaks no English and does not have a high school diploma, but has experience with a jackhammer. He may also be denied employment because he not have the requirement of a high school diploma which is not protected under the Civil Rights Act.
Nick, 23, is a college student with no jackhammer experience and is also epileptic. He has the required diploma but no experience with the operation of a jackhammer, which is not a requirement. This would not automatically exclude him from the job opportunity, but he does have a disability, epilepsy, and in most cases this would be covered by the protections in the Civil Rights Act. In this case his disability can cause risks to his co-workers and to anyone standing nearby if he was to have a seizure while operating the jack hammer.
Conclusion
In every business there are laws, rules, and regulations to follow to protect the entities and must be adhered to avoid the consequences that can affect all involved. It is important to consider tax information, employment practices, and liabilities when creating business entities.
References
McElrath J. (2011). Medical Malpractice Tips. Retrieved August 14, 2011 from http://www.ehow.com/info_8255162_medical-malpractice-tips.html
Cheeseman, H. (2010). The Legal Environment of Business and Online Commerce: Business
Ethics, E-Commerce, Regulatory, and International Issues, Sixth Edition. In I. Pearson
Education. Prentice Hall.
EEOC (2009), Laws Enforced by the EEO. Retrieved August 14, 2011 from
http://www.eeoc.gov/laws/statutes/index.cfm
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