Business Entities, Laws and Regulations Paper

Topics: Corporation, Types of business entity, Business law Pages: 4 (1444 words) Published: December 9, 2013


Business Entities, Laws and Regulations Paper
415
October 31, 2011

Business Entities, Laws and Regulations Paper
In this assignment, the first section I will be discussing what type of business entity the business model of Lou and Jose should have with their restaurant/bar and the other business model as an extermination business by Frank. I will also discuss each models characteristics and factors in starting those businesses with relation to laws and regulations. For the Second section it will focus on the construction scenario its elements and the laws and regulations in making the decision.

The first business model I will discuss is the restaurant/bar that Lou and Jose want to open. In my opinion the business entity that best fits what Lou and Jose want to have is the General Partnership. It’s a partnership in which each of the partners is liable for all of the firm's debts, and the actions of one partner are binding on each of the other partners. In this case Lou and Jose have an idea to open a restaurant slash bar in which patrons could hang out and watch sports on different T.V. throughout the area. The thing is they don't have the capital to support their business venture but with the help of an investor that they know (Miriam) she will provide them with the capital to get the business going on the condition that she has a percentage of ownership in the business. The taxation aspect to a general partnership is they have an advantage because this business entity is just like a sole proprietorship which means the business is not taxed. The way it works is, it becomes a shared responsibility in which income, losses, and gains are passed through to the general partners in accordance to the allocations provided by their partnership agreement. The advantage to this form of business is that the partners (Lou, Jose, and Miriam) can agree among themselves as to how income, losses, and gains are divided among the partners. The liability...

References: ExpertHub.com. (2011, Spring). www.smallbusinesslawfirms.com. Retrieved from http://www.smallbusinesslawfirms.com/resources/business/business-structures/chossing-right-business-entity.htm
U.S. Securities and Exchange Commission. (2010, January). Securities Act of 1933. Retrieved from http://www.sec.gov/about/laws.shtml
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