Bus 415 Business Laws, Entities, and Regulations

Any owner of a business knows the importance of knowing, learning, and understanding all parts of law that could help make sure that their business will be compliant from beginning to end to any laws that exist. We will now look at three different business scenarios that deal with business law but more specifically the laws and regulations that businesses must follow in order to protect their business. We will also discuss some operating laws such as employment laws that must also be followed for compliance issues.

The first scenario deals with a restaurant. Lou and Jose have plans on opening a new sports bar and restaurant with a very casual sports theme. They want to keep it simple ans serve food and drinks to sports fans of all kinds. By opening this type of restaurant, Lou and Jose can create a very profitable business for themselves. The problem lies in the actual money to open and start the business despite the fact they have a well thought out business plan and great idea. In steps Miriam, who is a very wealthy investor and can offer start up capital to Lou and Jose in return for a percentage of the ownership. A great place for these three to start would be a Limited Liability Corporation. This would protect Miriam in the long run even though she would have to front more start up capital. A Legal Liability Corporation basically states that the restaurant is its own separate entity and nobody will be held personally responsible. The benefits of the LLC also makes the business easily transferable between owners and can be sold to anyone as long as everyone agrees on the sale. There are also special tax breaks that you can use for new start up businesses. In this instance, even if one of the partners or all of them were to perish, the business would still exist. The only part of the business that Miriam would have to be concerned with is her part which is being an investor for her small part of the restaurant. She would never be liable for anything else other than just her funds that were used to finance the project. The restaurant will be run by Lou and Jose as they originally agreed. They must also be conscious of the business and take responsibility for making sure that the business grows in the right direction. They may face issues with enforced business regulations, accounting records or even being double taxed. The Limited Liability corporation also gives them the opportunity to expand and franchise their business further down the road of it makes sense. When they get up and running they are responsible for staffing their business which requires a lot of knowledge of employment acts, disability acts and safety codes as well as many others. After they do their research for all the laws Lou, Jose, and Miriam will be well on their way to running a successful business.

In our next scenario we look at a professional practice. Akiva and Tara have a really good plan of giving back to the community by wanting to open a birth clinic. After successfully completing all of their tests and requirements to become licensed obstetricians they feel their business will not only be a success monetarily but a success by helping others in need. Even though they took out a large loan for start-up, the belief that a Limited Liability partnership is the way these two professionals need to go. Some of the benefits that these partners can take advantage of are the ease of forming the business with minimal formalities that can delay start time. A lower starting cost than a regular partnership, tax perks provided by the government, and this system is found to be easier to dissolve. On the flip side, Akiva and Tara will certainly meet up with some challenges that can be viewed a minimal, but can lead to disaster if not addressed upfront. Some other challenges are unlimited liability for partners, future investments might be difficult, finally the lack of continuity in case of death or a partner wants out of the business.

This business can be very prosperous for these partners. With the idea of starting one clinic, they can make sure they are local enough to various hospitals, children's hospitals, and other professional practices where referrals can easily be given to patients and all the practices can benefit off the client. Akiva and Tara can really broaden their client base by being close to other medical facilities. If their clinic produces enough profit, they can start to think of expanding their business to other areas in need.

Within this clinic, they will need to staff pretty well that can consist of a secretary and depending on how busy the clinic is they will need technicians