Business Entities, Laws and Regulations

Starting a restaurant/bar The case of starting the business for the two friends, Lou and Jose, has implications in terms of entity, Laws and regulations. The best business entity for this choice of business is a partnership. The reason for this selection is that there is scanty information on the experiences of the two friends with regard to management of a restaurant as well as a bar.Advertising We will write a custom research paper sample on Business Entities, Laws and Regulations specifically for you for only $16.05 $11/page Learn More If the assumption is that the two friends have business management skills, a general form of partnership is ideal (Bevans, 2006, p 73). There is also ready capital funding from the investor. Since the agreement with the investor s that the investor gains a percentage ownership, the implication draws management commitment to Lou and Jose. Taxation implications During the first years of the operation of a partnership, it is expected that operating losses may be incurred. As a result, these losses are shared amongst the partners operating the business. The implication is that the returns of the partners is not nominated for taxation, but could be exempted. Secondly, in comparison with other business entities like corporations, taxation is done at the level of investor or partner with regard to business earnings (Smith, 2009, p 6). Due to these tax benefits, this form of business entity is ideal for these entrepreneurs. Liability issues A general partnership in this case has an unlimited liability. This comes as a disadvantage to the partners since there is lack of protection of the partners’ assets in the event of creditors claim. However, for this kind of arrangement, the risk to the partners is low considering the fact that capital will be provided by an investor who will own the business partially. Laws and regulations The laws and regulations for starting a restaurant require compliance to some laws and regulations. Some of the laws and regulations require a registration certificate in the state, health department regulations certificates, fire department permits, sales tax registration, building, and construction permit. Other regulations that require compliance will be acquisition of state liquor license for the operation of the bar. The major risks involved in running a restaurant are financial. The business is a lucrative venture but it does not have direct success particularly in its start up stages (Lee, 2005)Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Birth clinic business start-up The two friends do not have sponsorship able to finance their business start up costs. Depending on their mode of running the business, they can choose either a partnership or sole proprietorship. The ideal entity in their case would be a general partnership. As the business w ill be in its initial stages, management and responsibility of Tara and Akiva would be highly required. This is preferred to limited partnership due to its simplicity in running the business (Spadaccini, 2010). Since they are certified and licensed practitioners, they can choose to bring other interested practitioners in their business in order to help secure the huge start up loan that they intend to borrow. Taxation issues With regard to taxation, partnerships have tax advantages leading to crucial comments claiming that taxes are only reported in partnerships but not paid. Since it is a general partnership, its tax implications resemble those enjoyed by the starters of restaurant above. Taxation depends on the nature of the investors as well as business earnings. Liability Running the clinic as a general partnership has an unlimited liability to the partners. In the event of failure to pay back the borrowed loan, the creditors have a right to take the assets of either the partner . The implication therefore is that each partner has a full liability to the obligation of the business Laws and regulations Before starting a birth clinic business, one has to pass experience and education aspects in order to obtain a license as a practitioner. Since the two friends already have these basic requirements everything the legal requirements for the area that they should register the business for taxation purposes as required by their state or country of operation. Under the medical regulations, equipment and construction requirements should be up-to-date for those willing to establish private medical clinics. During practice there, are set codes that medical practitioners are required to adhere to. For instance, physician’s codes spells out the conduct and behavior of physicians, medical assistant’s code that defines the ethics of a person affiliated to a medical organization (Keir, 2007, p 53) The risks involved in the practice of private clinics are whe n the patients develop complications requiring intensive care admission, where the facilities available cannot handle the situation. As a business, the risk involves money investment. Should the business fail to perform, the two investors may find it hard to repay the huge loan borrowed to fund the startup costs.Advertising We will write a custom research paper sample on Business Entities, Laws and Regulations specifically for you for only $16.05 $11/page Learn More Construction Scenario Michelle is an experienced person in the operation of the jackhammer. Because of her qualifications, she is a probable candidate for the advertized position. The hiring manager must not discriminate against her condition and deny her the position. She is covered under the Pregnancy Discrimination Act (PDA), which prohibits discrimination against pregnant women at the workplace (Ford, 2011). In the case of Nick, he is a college graduate suitable for the jackhammer despit e being epileptic. Therefore, he shall not be discriminated against because of his epileptic condition bearing in mind the Disability Discrimination Act. With provisions of this Act, he shall not be disadvantaged on grounds of epilepsy. Felipe has two disadvantages in his employability. In the first place, he has a language barrier such that he cannot speak any English. Secondly, he doesn’t have a high school diploma. However, he has experience enough with a jackhammer. Felipe has a chance to be considered for the post advertized by the hiring manager on grounds of experience. Besides, the Jobseeker’s Employment Act (JEA), entitles to getting employed without being discriminated against due to a language barrier. On the other hand, due to law qualifications, this Act also covers him with respect to age and compensation he is entitled to as a worker (Schimdt, 2000). With respect to Erick, age is a factor to consider. Although, he does not have the educational qualificat ions, there is no doubt that he is the most experienced of the applicants. Others have relative experiences. In some cases, applicants do have required academic merits for the position but lack the comparative experience held by Eric. If the construction company seeks quality output at the jackhammer, Eric is the choice. However, it is natural for the hiring manager to be indifferent to Eric’s application, considering his age. Assuming that he is not hired because of his age, he can petition this discrimination under the Age Discrimination in Employment Act 1967(Sergeant, 2006, p 91). References Bevans, N.R. (2006). Business organizations and the cooperate law. Clifton: Thomson DelmerAdvertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Ford, L.E. (2011). Women and Politics: the Pursuit of Equality. Boston: Cengage Learning Keir, L. (2007). Medical assisting: administrative and clinical competencies. New York: Thompson Learning. Lee, R. (2005). The Everything Guide to Starting and Running a Restaurant: Secrets to a Successful Business. Avon: F+W media, Inc. Schmidt, R. (2000). Language Policy and Identity Politics in the United States. Philadelphia: Temple University Press Smith, J.E. (2009). Taxation of Business Entities 2009. Mason: Cengage Learning. Spadaccini, M. (2010). Forming an LLC: In Any State. Miller Works: Entrepreneur Media, Inc. Sergeant, M. (2006). Age Discrimination in Employment, Volume 13. New York: Gower Publishing. 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