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Business Entities, Laws, and Regulations Paper

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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 in order to make a profit. Miriam has the most to lose if the business goes south, but Lou and Jose will be most liable. Opening a bar of any type, the biggest hurdle is getting a liquor license. This can take a significant amount of time, and can hold up the opening of the sports bar. The ability to acquire the license can depend on several variables, such as the city, population...

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