Business Entities, Law, and Regulations Paper

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Business Entities, Law, and Regulations Paper Valerie A. Felix University of Phoenix BUS/415 Business Law Michael Tancredi July 19, 2011 Akiva and Tara have just completed all educational and experiential requirements to be licensed as obstetricians. They want to open a birth clinic together and plan to take out a large loan to finance start-up costs. In doing so they will need to file the type of business entity they would like to be recognized as. After researching the differences between a limited liability company and limited liability partnership the best choice for Akiva and Tara is to file for a limited liability partnership as it best suits their medical profession. This choice is ideal as it limits the partner’s legal liability, debts, and obligations to only what they invested in the company and not their personal assets. To file for the LLP Akiva and Tara will have to file an article of partnership with the secretary of state in which they live and are doing business in(Cheeseman, 2010). Upon doing so it is required that they obtain personal liability insurance with a minimum of one million dollars. This type of insurance policy would protect Akiva and Tara if they should ever be sued for medical malpractice, negligence, and misconduct by either of the partners or any employees that may work for them. Akiva and Tara must adhere to the laws and regulations of practicing birthing with their clients. They have already been licensed as obstetricians to practice the medical profession otherwise they could be sued for medical malpractice. Drug regulations must be followed to ensure they are administering drugs according to guidelines. Keeping medical records of their patients on file per the states instruction is also important. While they progress in their new business Akiva and Tara must be aware of the taxation of the business. They would

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