Business Entities Regulations

Business Entities, Laws, and Regulations Paper
Tia London-White
BUS 415
May 23, 2011
Pamela Weddell

Business Entities, Laws, and Regulations Paper
Extermination Business: The best business entity for Frank would be a franchise. A franchise is established when a franchisor, Frank, licenses another party to use their trade name, trademarks, commercial symbols, patents, copyrights, and other property while supplying and selling their goods and services (Cheeseman, 2011). Frank should enter a chain-style franchise. In this type of franchise he will be allowed to service the public and sell products in different areas. He will have to create franchise agreements. The agreements will establish the policies and procedures of the franchise.
Frank’s chains are considered separate legal entities from the franchisees. His chains will be held liable for their own contracts and negligence. His liability will depend on the level of control he has over the franchisees. If Frank sets up as an S corporation, he will not have to pay federal income taxes at the corporate level. He will report his profits and losses when he files his individual tax returns.
Professional Practice: The best business entity for Akiva and Tara is a limited liability partnership, LLP.
A LLP is a special form of partnership that states all partners are limited partners who stand to lose only the money that they invested to start the business (Cheeseman, 2011). LLPs are limited to professionals such as doctors, lawyers, and attorneys (Cheeseman, 2011). To create their LLP the must file an articles of partnership with the secretary of state where they will be operating their business. LLPs are required to carry a large sum for liability insurance. Most states require a minimum policy amount of $1 million. This policy covers misbehaviors, carelessness, and any wrong doings of a partner or any other employee that works for the LLP. In a LLP, Akiva and Tara will not have to pay federal taxes on their business to the IRS. They will have to report their profits and losses of the business when they file their individual tax returns. Once Akiva and Tara have established their birth clinic as a LLP, they must follow the American Public Health Association, APHA, guidelines. They must make sure that their staff members are licensed and trained in the appropriate job functions of the clinic. They must make sure the clinic is designed and built properly. The clinic must have the right certified equipment. The clinic must have the appropriate number of birthing, bath, laundry, exam, and storage rooms. These rooms must be the correct size and equipped accordingly. In addition, there must be an area for emergency and lab equipment. There must be hand washing stations in every area of the clinic. The stations must be easily accessible to the entire staff. The clinic must also be equipped with the approved fire and safety systems. Akiva and Tara must have a documented emergency management plan. The clinic must keep and maintain an updated policy and procedures manual. The manual must include consultation, transportation, health and medical records, program evaluations, quality
assurance and professional accreditation procedures. Akiva and Tara should have a successful birthing clinic if they follow all the necessary guidelines and operate as an LLP.
Construction Scenario: Surebuild, Inc. is incorporated. They operate under the articles of incorporation. They have a registered agent and have corporate bylaws. They are probably setup as an S corporation. This allows them to pay no federal taxes at the corporate level. The shareholders report the corporation’s profits and losses when they file their individual income tax returns. Because they are incorporated, Surebuild, Inc.’s shareholder’s assets are not personal liable for any contract or debts of the corporation. The position Mei-Lin is hiring for requires a successful applicant to have a high school diploma. The first applicant, Michelle, has a high school diploma, is expecting a child, and has jack hammering experience. She meets the qualifications. Mei-Lin can not, not hire her because she would be violating the Pregnancy Discrimination Act of 1978. However under the Occupational Safety and Health Act of 1970, OSHA, she can not allow Michelle to operate machinery that may cause harm to her and her unborn child. Mei-Lin may offer her an alternative position until she has her baby. Eric has jack hammering experience but no high school diploma. He is automatically excluded for the job because he does not meet the qualifications of having no diploma. Felipe, like Eric, has experience but is disqualified because he does not have a high school diploma. Nick is a college graduate with no experience in jack hammering and has a medical condition. He is epileptic. Mei-Lin could hire Nick. However because OSHA requirements of employment safety, he may not be able to perform the job related duties. Mei-Lin could offer him another job without violating the Americans with Disabilities Act of 1990. Mei-Lin is faced with a difficult task in hiring these applicants. However, if she follows the proper laws she will save Surebuild, Inc. from unnecessary lawsuits.

References
Cheeseman, H. (2011). The Legal Environment of Business and Online Commerce (6th ed.). Boston, MA: Prentice Hall.