Business Entities, Laws, And Regulations Essay

When making a decision to establish a business, the potential business owner or owners will be required to partake in many important decisions. Decisions in regard to what type of business he or she desires to own and operate, what type of business entity to use, and what professional advisors to select, such as; accountants, insurance agents, and lawyers. Professional advisors can assist the business with start-up decisions such as; determining the best possible form of ownership for the business owner or owners, protection of property rights, and best possible actions to maintain taxation functions as well as maintain compliance and business laws (My Own Business, 2011). Business entities to conduct business are sole proprietorship, corporation, partnership, s-corporation, limited liability partnerships (LLC), and non-profit organizations (eHow, 2011). Business owners need to consider possible liability issues, federal and state laws, regulations, and potential risks. Owners that have an understanding of these considerations and make them a priority will most likely succeed.

    Lou and Jose plan to open a sports bar and restaurant so that their customers can have a nice place to go and socialize while watching sporting events. The two potential business owners want to provide a big screen television sets that are located around the bar. They have a wealthy friend Miriam who is also an investor, though he does not have a lot of time to be involved in the participation of the business he does want to provide Lou and Jose with the capital that they need to start the business. He has asked that in return for the startup capital that he have a percentage of the ownership. In this scenario it would be best for Lou and Jose to establish a limited liability partnership however they could go with a corporation as their choice of business entity.

    Miriam, being an investor will provide the capital to help Lou and Jose get the new sports bar and restaurant up...