BUS/415
February 6, 2012
Business Entities, Laws, and Regulations
When go forthing or operate a business, owners face many challenges such as choosing carefully whom they hire and several liability issues. They also have many choices to curb like where and how to establish the type of business entity to become, and what assortment of requirements they need to hire the right people. The choices the owners make can make or break their companies. Business owners who are aware of each business law and regulations have great potential of their order becoming safe and successful. This news report impart evaluate the scenario of tierce businesses, a sports bar, a birth clinic, and a constructions company. In addition, the paper will cover employment laws and regulations with which each business essential follow when making important decisions.
Scenario One (Restaurant/Bar)
Jose and Lou wants to open a sports bar and restaurant. The two do not have lots money to stay put started. Miriam does not have time to start or run the business but does have the money. She wants to submit capital to start the business, and wishes to receive a percentage of ownership.
In this scenario the business that will best suit this establishment is a manager-managed Limited Liability Company (LLC). Jose and Lou will perform as managers and manage daily business operations. Miriam, on the other hand, will be a nonmember who has no control of the business unless the operate agreement states otherwise (Cheeseman, 2010). According to Cheeseman (2010), when functioning has an LLC, the government taxes the entity as a partnership unless the LLC chooses to have the government to tax them as a corporation. Therefore, the government does not tax an LLC at the aforementioned(prenominal) level as an entity, but an LLCs income or losings to each owners individual income tax returns. This bearing each LLC member avoids double taxation (Cheeseman, 2010).
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