...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...
Words: 978 - Pages: 4
...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,...
Words: 1589 - Pages: 7
...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...
Words: 947 - Pages: 4
...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...
Words: 1795 - Pages: 8
...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...
Words: 1588 - Pages: 7
...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...
Words: 1041 - Pages: 5
...Business Entities, Laws and Regulation Paper Earnestine Pearson BUS/415 April 23, 2012 Tony Cardillo A entrepreneur according to Cheeseman, 2010, “is a person who forms and operates a business” (p. 250). In opening and starting a business, an individual will have to decide what type of business to form, and if he, she, or they is qualified to do. Individuals must also be able to determine the different forms of business organizations. These forms include: sole proprietorship, general partnership, limited partnership, limited liability partnership, and corporation. According to Cheeseman, 2010, “the selection of business forms has many factors to depend on. Factors including the ease of cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax consideration, and the like” (p,250). In this paper, I will also discuss three scenarios: Business Professional Practices, the Extermination Business, and the Construction scenario. I will discuss the business entity of each scenario, the taxation of each scenario, taking charge, liability issues that each business must consider, identify the laws and regulations, and risk associated with each scenario. Professional Practice This scenario is about two friends Akiva and Tara who wants to open a birth clinic together. They have both completed all of their educational and experimental requirements of becoming obstetricians. Before they...
Words: 1058 - Pages: 5
...contrast to the fragmented records that exist today. Further, health IT is promoted as a critical tool for improving population health by allowing for the more efficient gathering of data regarding the effectiveness of certain treatments. Finally, health IT is also expected to help decrease health costs by reducing the duplication of services and the delivery of unnecessary or inappropriate care. This paper examines some of the “gaps” in privacy protections that arise out of the current federal health privacy standard, the Health Insurance Portability and Accountability (HIPAA) Privacy Rule, the main federal law which governs the use and disclosure of health information. Additionally, it puts forth a range of possible solutions, accompanied by arguments for and against each. The solutions provide some options for strengthening the current legal framework of privacy protections in order to build public trust in health IT and facilitate its use for health reform. The American Recovery and Reinvestment Act (ARRA) enacted in February 2009 include a number of changes to HIPAA and its regulations, and those changes are clearly noted among...
Words: 3190 - Pages: 13
...Business Entities, Laws and Regulations BUS/415 Business Entities, Laws and Regulations Opening any business can be a daunting task with many regulations and laws that must be followed. In this discussion, two businesses will be examined with the goal of determining, for each business, the following: • The business entity that represents the best choice for each business • Taking control • Taxation issues • Liability issues • Laws and regulations each business must consider in starting the business • Risks the business must protect itself against The Bar The first business a restaurant/bar: “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 in the business, but wants to provide capital to start the business in return for a percentage ownership” (University of Phoenix, 2011). * The business entity that represents the best choice for this business: LLC. For this type of a business you have three options; an LP, Corporation, and an LLC. While an LP would fit the needs, an LP does not limit the liability to Lou and Jose, in that, they would be personally liable for partnership debts. A Corporation could also fit; however, a corporation is probably too restrictive for this situation, which is why an LLC, with its minimal requirements and limited...
Words: 596 - Pages: 3
...Business Entities, Laws, Regulation Paper Renecia Jones BUS415 November 3, 2011 Alexia Davis Business Entities, Laws, Regulation Paper When starting a new business, regardless of what kind of business it is there are has to be motivation as well as a whole lot of patience. A lot of research must be done when opening a business. A person who wants to open a new business must have a well thought out business plan to take to any potential partners or investors to help increase their chances for better success. There are many different rules and regulations that one must learn to protect their investments. It also requires looking into the business entities, taking control, taxation, and of course taking liability issues into consideration. It is important for the business to be able to protect itself. Upon selecting the right type of organization, the entrepreneur must also learn about the laws and regulations that he or she must follow to comply with Sports Bar Scenario In order for Lou and Jose to open a sports bar a lot of work will have to take place and money which they do not have much of so they asked Miriam for help. All three will enter into a partnership agreement. A partnership is “an association of two or more persons to carry on as co-owners of a business for profits” (Cheeseman, 2010). Lou and Jose will have main control because Miriam is only investing money for a profit. There will be liability issues in this business and all three will have something...
Words: 886 - Pages: 4
...Business Entities Paper Arbra Jones Business Law BUS/415 Professor Dina C. Gledhill February 20, 2012 Business Entities This paper will evaluate three scenarios, restaurant and bar with wealthy third party investor, an extermination company with a wealthy owner and investor, and a construction company which is hiring for particular position. The business entity that represents the best choice for each business will be identified as well as the laws, regulations, taxation, and control each business must consider. The liability issues each business must protected from will also be discussed. The evaluation of the construction company will identify and discuss employment laws and regulations the company must abide by. Restaurant and Bar Scenario Based on information provided in the scenario, Lou and Jose want to open a sports bar and restaurant. Miriam, a wealthy investor, has agreed to invest in the venture because Lou and Jose do not have enough startup capital. In return for her investment Miriam will receive a percentage of the company’s profit as an owner. Business Entity, Control, Taxation, and Liability A partnership would be the best business entity for the sports bar because there are three owners that will participate in the business and receive a percentage of the business profits. Miriam will provide the investment capital and Lou and Jose will run the day-to-day operations. A partnership allows all parties to have control of the business and decisions...
Words: 1583 - Pages: 7
...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...
Words: 251 - Pages: 2
...Law paper / Role and Functions Joshua P.W. Patterson LAW/421 May 4, 2015 Linda Gollub Law paper / Role and Functions This academic paper will be focusing on society, and the role business law has in contributing functions of an everyday business. A subject of interest will be the addressing the needs for rules and regulations that have been established as law for companies. In addition to grasping at understanding of business law and the need this paper will go over some benefactors the law affects and protects. The reason for law First there must be an understanding of the basis for a law. That reason would be to regulate reasonable conduct between people, businesses, and even countries. Laws give a foundation for handling any disputes as well as dealing with entities that violate the laws set in place. This thought brings us to our next part of a law, and that is the consequences that are determined by a society for violating a law. The consequences or put into place to promote a standard of conduct with consequences for misconduct. Functions Law is set in place for a desired effect for society and has certain functions to maintain. The most obvious reason would be to keep the peace between people, businesses, and countries to name a few. In understanding keeping the peace comes with a collective conscious and compromise within the society. Society has a government that enforces these laws that give them a power that also has to be kept in check while promoting...
Words: 747 - Pages: 3
...siness entitiesBusiness Entities, Laws, and Regulations Paper Akiva and Tara Limited liability partnerships are organized to protect individual partners from personal liability for the negligent acts of other partners or employees not under their direct control. LLP's are not recognized by every state and those that do, sometimes limit LLP's to organizations that provide a professional service, such as medicine or law, for which each partner is licensed. Partners report their share of profits and losses on their personal tax returns. (SCORE, 2013) Because Akiva and Tara will be going into obstetrics, it is best for them to build their business as a limited liability partnership in order to protect themselves from being subjected to medical malpractice lawsuits because one partner has engaged in misconduct or tortious behavior. Through a LLP, both Akiva and Tara would manage themselves and abide by partnership agreement for management and control issues. Should they elect to use an LLP, They would fall under pass-through taxation treatment (no tax is paid on income to the entity, but when the entity distributes dividends, tax is paid at the individual partner’s individual tax rate). May also have to pay miscellaneous state and local taxes to operate business. (Melvin, 2011, p. 360) This type of taxation works well when there are two people in business together in the field that Akiva and Tara are entering due to the fact that one doctor could profit more based of the...
Words: 430 - Pages: 2
...CHAPTER 2: REGULATION IN FINANCIAL ACCOUNTING Chapter 2 regulation in Financial accounting LEARNING OUTCOMES Upon completion of this chapter you should be able to understand: • The difference between management and financial accounting. • Why accounting regulations are important and required. • The need for and the structure of professional regulation, company law, stock exchange legislation and EU Directives. • How the different aspects of regulation work together and complement each other. • The process through which an accounting standard comes into being. REVISION RESOURCES EXAM QUESTIONS: Sample and Past papers are available from the website of Accounting Technicians Ireland and are essential aids when studying Advanced Financial Accounting topics. 7 Chapter 2 : Regulation in Financial Accounting 2.1 Advanced Financial Accounting the FunCtion oF FinanCial aCCounting and reporting The International Accounting Standards Board (IASB) in their Conceptual Framework for Financial Reporting state that ‘the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. Those decisions involve buying, selling or holding equity and debt instruments, and providing or settling loans and other forms of credit’. This Conceptual Framework...
Words: 7356 - Pages: 30
