Business Entities, Laws, and Regulations Paper
When opening a business, no matter what type of business, one must have motivation, desire, and talent. There is an abundance of research and planning goes into each business plan. Opening a business is not something that just happens overnight. Making a comprehensive, well-thought-out business plan, from the very beginning will increase the chance for success. Also, this detailed business plan will be a valuable tool when trying to raise money to get the business started. There are rules and regulations that each business owner must learn to protect their investment and turn their company into a success.
Opening a sports bar and restaurant will take an extreme amount of work for Lou and Jose. Because they do not have much money, they are bringing in Miriam to help with the finances. All three individuals will be partners in the business and will have a partnership agreement. A Partnership is defined by the Indian Partnership Act, 1932, as ‘the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all’ (Definition, 2010). Even though all three individuals will be partners in the sports bar, only Lou and Jose will have main control. This is because Miriam is only investing money in return for a profit. All three individuals will have liability issues in the business because all three individuals have something to lose. Lou and Jose will have the most to lose because both of them are the main controllers in the business.
In order for the sports bar to open they first need to obtain a liquor license and a license to sell food on the premises. They will have to meet and pass all requirements set forth from their local Health Department. They will need to have both of the licenses in clear view for all patrons to see. They will also have to go to a food handling class as well as an alcohol management class. All employees that they hire will also have to attend and pass these classes before being able to work in the sports bar. Lou and Jose will also have to hire security to protect them from serving alcohol to underage individuals and to protect the other patrons of the sports bar. It is imperative that Lou and Jose hire trustworthy individuals to work for them so that their sports bar can be successful.
Frank, who wants to open a chain of exterminating business across the United States, will open them up under a sole proprietorship. A sole proprietor is someone who owns an unincorporated business by himself or herself (Sole Proprietorships, 2010). Because Frank is the sole proprietor in the extermination business, he will have sole control over the entire company. He will be able to file all of the company’s taxes underneath his own. Frank is taking a huge risk in opening up the chain of extermination business because he is providing all of the money from his personal account. Frank will also need to obtain a Commercial Pesticide Applicator License. To do this he will need to pass all state tests and examinations and pay all of the appropriate fees (Pesticide Agricultural Applicator, 2006). Once Frank passes the examinations, he will need to have his license recertified each year to stay current. If Frank decides to hire any other employees, he will have to have each individual employee take and pass the examinations. No employee will be able to work without acquiring the necessary license. Frank will also be taking a risk when using the pesticides around children and pets. Frank needs to ensure that he takes all necessary precautions when using these pesticides.
Mei-Lin, who is the hiring manager for a new construction corporation called Surebuild, Inc. Mei-Lin has advertised a position in the company for a jackhammer operator. She has a challenging job in determining which applicant will be the best fit within the new company. She has to ensure that she treats each individual applicant fairly, and also finding the most qualified under the Equal Employment Opportunity Act. The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information (Laws Enforced by EEOC, 2009). Mei-Lin has four applicants who have applied as the jackhammer operator and will have to hire only one.
Michelle, who is a 35-year-old pregnant high school graduate, has experience as a jackhammer operator. Mei-Lin cannot discriminate against Michelle just because she is pregnant. Eric, who is a 55-year-old experienced jackhammer operator, does not have a high school diploma. Mei-Lin can choose not to hire Eric because the job advertisement clearly stated that the applicant must have a high school diploma. Felipe is a 38-year-old who does not have a high school diploma and does not speak English also can be dismissed based on the advertisement stating the applicant must have a high school diploma. Nick, who is the final applicant, is a 23-year-old college graduate with no experience with a jackhammer. Nick also has epilepsy but the law states that he cannot be discriminated against because of a disability. Mei-Lin can then choose between Michelle and Nick to find the right candidate for the jackhammer operator position.
There are many rules and regulations that business owners and employees must follow daily. For one to open their own business, it takes a great amount of hard work and dedication, but most importantly it takes learning and understanding the rules and regulations that comes with running the company. From taxation to liability issues to hiring employees, business owners have to understand every aspect of running and owning a business successfully. It is vital that each member of the organization does their part to protect his or her initial investment and to ensure that the company grows into a success. From the Federal to the State laws, the business owner needs to understand each law to the fullest. Having a successful company is something every business owner strives toward, but each owner must fully understand the rules and regulations that come along with the business.
Definition . (2010). Retrieved December 05, from How To Form A Partnership Firm: http://www.vakilno1.com/howto/partnership/ptn1.htm.
Laws Enforced by EEOC. (2009). Retrieved December 06, from U.S. Equal Employment Opportunity Commission: http://www.eeoc.gov/laws/statutes/index.cfm.
Pesticide Agricultural Applicator. (2006). Retrieved December 05, from Texas Department of Agriculture: http://www.agr.state.tx.us/agr/program_render/ 0,1987,1848_5325_7016_0,00.html?channelid=5325.
Sole Proprietorships. (2010). Retrieved December 05, from IRS.gov: http://www.irs.gov/businesses/small/article/0,,id=98202,00.html.
Writer is a junior in college studying in the health care industry field. He already has one degree in Business and is studying for his second one in Business Administration. She is the co-owner of a Four Wheel Drive Lift Kits website that sells . She enjoys school and working on her site, but she does enjoy relaxing more.
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