Business Entities
Business Entities, Laws & Regulation Paper
BUS/415
February 4, 2011
Business Entities, Laws & Regulations When starting your own business, you have to do research on licensing, state laws and regulation. A person has to also research other requirement as well like, business entities, taking control taxation and taking liability issues into consideration. With all this done and in motion this will help the business to protect itself from anything. In my paper I will examine three different scenarios, restaurant/ bar business, and extermination business and construction scenario. The paper will explain the kind of business, taxations, liability and employment laws they have to take in consideration.
Restaurant/ Bar Business Lou and Jose want to open a sport bar but don’t have much money to open the bar but they have Miriam a wealthy investor. But the thing is Miriam doesn’t have time to participate. In this situation, the three individuals can form a general partner with all three owning the business. General partners’ is partners in a limited partnership who invest capital, manage the business and are personally liable for partnership debts. With being general partners this will make Miriam the investing partner with Jose and Lou being the managing partners. This will allow Jose and Low to control the business and Miriam share in the business profits. “A business must meet four criteria to qualify as a partnership under the UPA [UPA Section 6(1)]. It must be (1) an association of two or more persons (2) carrying on a business (3) as co-owners (4) for profit” (Cheeseman, 2010). With all the criteria meet this is why general partners fit for Lou, Jose and Miriam. When it comes to taxation in a partnership this is none, a partnership doesn’t have to pay federal taxes. “Instead, the income and losses of a partnership flow onto and have to be reported on the individual partners’ personal income tax returns. This
BUS/415
February 4, 2011
Business Entities, Laws & Regulations When starting your own business, you have to do research on licensing, state laws and regulation. A person has to also research other requirement as well like, business entities, taking control taxation and taking liability issues into consideration. With all this done and in motion this will help the business to protect itself from anything. In my paper I will examine three different scenarios, restaurant/ bar business, and extermination business and construction scenario. The paper will explain the kind of business, taxations, liability and employment laws they have to take in consideration.
Restaurant/ Bar Business Lou and Jose want to open a sport bar but don’t have much money to open the bar but they have Miriam a wealthy investor. But the thing is Miriam doesn’t have time to participate. In this situation, the three individuals can form a general partner with all three owning the business. General partners’ is partners in a limited partnership who invest capital, manage the business and are personally liable for partnership debts. With being general partners this will make Miriam the investing partner with Jose and Lou being the managing partners. This will allow Jose and Low to control the business and Miriam share in the business profits. “A business must meet four criteria to qualify as a partnership under the UPA [UPA Section 6(1)]. It must be (1) an association of two or more persons (2) carrying on a business (3) as co-owners (4) for profit” (Cheeseman, 2010). With all the criteria meet this is why general partners fit for Lou, Jose and Miriam. When it comes to taxation in a partnership this is none, a partnership doesn’t have to pay federal taxes. “Instead, the income and losses of a partnership flow onto and have to be reported on the individual partners’ personal income tax returns. This
References: Cheeseman, Henry (2010). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory, and International Issues (6th Edition) I certify that the attached paper is my original work. I am familiar with, and acknowledge my responsibilities which are part of, the University Of Phoenix Student Code Of Academic Integrity. I affirm that any section of the paper which has been submitted previously is attributed and cites as such, and that this paper has been submitted by anyone else. I have identified the sources of all information whether quoted verbatim or paraphrased, all images, and all quotations with citations and references listings. Along with citations and references listing s, I have used quotation marks to indentify quotations of fewer than 40 words and have block indentation for quotations of 40 or more words. Nothing in this assignment violates copyright, trademark, or other intellectual property laws. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature. Student’s Signature (name typed here is equivalent to a signature): _________Kristy Smith__________________________