Morgan

Business Entities, Laws, and Regulations

Morgan Mayberry

Business Law

John Arnold

June 24, 2012

Business Entities, Laws, and Regulations

Business Entities

When starting a business, the owners of the business have to decide which type of business entity would be best for the business. Akiva and Tara have just become licensed obstetricians and want to open a birth clinic together. Becoming a limited liability company may be the best business entity for them to choose. Profits and losses can pass along to Akiva and Tara, the owners of the company, so the business will not have to be taxed for that. There is no double taxation. The owners of the company have limited liability over the businesses debts and actions. Lou, Jose, and Miriam want to open a sports bar and restaurant. A partnership business entity may be the best choice for their business. They will all be contributing something to the business whether it is money, labor, or both and they will share profits. The profits of the business will go straight to the owners and the owners will report it on their tax returns. The business does not have to pay income tax. The owners are held liable for any of the businesses debts and actions. A contracting company may want to consider choosing to become a corporation to keep themselves and their business separate.

Laws, Regulations, and Risks

Before starting and/or running a business, it is important to know the laws, regulations, and risks that come along with the business. Laws and regulations are made for companies to follow to ensure that we have fair business practices. The risks are important to be aware of, prepared for, and should be avoided and best as possible. All employers have to treat employees fairly and pay them a fair wage.

Akiva and Tara are obstetricians who owe a duty of care to the patients that they will provide care for in their business. If they fail to treat patients with the...