Business Entities, Laws, and Regulations Paper 
Business Entities, Laws, and Regulations Paper
Greg Celentano
BUS/415 – Business Law
Teresa Anderson
June 13, 2011
Business Entities, Laws, and Regulations Paper This paper will examine two business scenarios and determine which business entity is the best choice for each business after taking in to consideration control, taxation, and liability issues. In addition laws and regulations each business must consider in starting the business will be identified along with the risks that each business must protect itself against. Next this paper will examine a construction scenario and identify the employment laws and regulations with which the business must comply in making a decision in regards to which applicant to hire.
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.
Business Entity For this business scenario the best business entity is a limited partnership or special partnership. There are two types of partners in a limited partnership: general partners and limited partners. General partners invest capital, manage the business, and are personally liable for partnership debts. Limited partners invest capital but do not help with the management aspect and are not personally liable for debts beyond their capital contribution. Lou and Jose will be able to contribute their money and be responsible for managing the business. Miriam will contribute her money and that is all that is required of her. Often in a limited partnership, there is a limited partnership agreement that states the rights and duties of both partners. This document will state the terms and conditions regarding the operations, termination, and
Greg Celentano
BUS/415 – Business Law
Teresa Anderson
June 13, 2011
Business Entities, Laws, and Regulations Paper This paper will examine two business scenarios and determine which business entity is the best choice for each business after taking in to consideration control, taxation, and liability issues. In addition laws and regulations each business must consider in starting the business will be identified along with the risks that each business must protect itself against. Next this paper will examine a construction scenario and identify the employment laws and regulations with which the business must comply in making a decision in regards to which applicant to hire.
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.
Business Entity For this business scenario the best business entity is a limited partnership or special partnership. There are two types of partners in a limited partnership: general partners and limited partners. General partners invest capital, manage the business, and are personally liable for partnership debts. Limited partners invest capital but do not help with the management aspect and are not personally liable for debts beyond their capital contribution. Lou and Jose will be able to contribute their money and be responsible for managing the business. Miriam will contribute her money and that is all that is required of her. Often in a limited partnership, there is a limited partnership agreement that states the rights and duties of both partners. This document will state the terms and conditions regarding the operations, termination, and