Business Entities Laws Paper 1 Business Entities Laws and Regulations Paper Business Law 415 Business Entities Laws Paper 2 Business Entities Laws and Regulations Paper In forming any business there are risks associated with the formation and operation of said business When forming a business it is important to consider the risks involved and choose The correct entity to fit the business needs and the legal impact future events could have on the business Also looking into the entity we have legal issues that will arise laws and regulations applicable to the entity could affect the outcome of the case if any legal action were to be taken With places of employment looking into what regulations apply to a specific area and regulations regarding the treatment of employees it becomes clear that going into business comes with more risks than just an idea and putting up money In this paper scenarios will be examined and the applicable laws that could affect the outcome of each scenario Lou and Jose plan to open a sports bar and restaurant where customers socialize and watch sporting events on large screen TVs that hang around the bar They do not have much money but they do have Miriam a wealthy investor who does not have time to participate in the business but wants to provide capital to start the business in return for a percentage ownership In the above scenario Lou and Jose should form and Limited Liability Corporation this type of corporation has the advantage of protection of personal assets against business debt personal income taxes are filed which list the profits and losses of the business the ability to have a flexible management team and can set the business up as the owners see fit LLC s are also well received because they can have foreign investors if the company so wishes The tax laws regarding LLC s require specialized tax forms and under federal law are treated as partnerships so it is best if the LLC consults a licensed accountant to file taxes and take advantage of all the tax breaks afforded an LLC The investment of a private individual like Miriam will also work for an LLC as the corporate structure is Business Entities Laws Paper 3 flexible LLC s like any other business must be very careful to follow employment rules and avoid any type of discrimination when they conduct job offerings and hiring of employees In the second scenario Professional practice Akiva and Tara have just completed all educational and experiential requirements to be licensed as obstetricians They want to open a birth clinic together They will take out a large loan to finance start up costs Akiva and Tara The best form of business for these two partners are a Corporation in this case there are two partners who want to form a clinic that provides medical services Under the rules of the Corporations rules you can raise capital by borrowing from a bank like in the case Akiva and Tara can form a domestic corporation which means they will operate the clinic within the state they plan to operate the clinic Corporation gives more protection to the Doctors and will allow the flexibility needed to construct the business as it grows The first step in this process is to file articles of incorporation The articles of incorporation consist of the name of the corporation The number of shares the corporation is authorized to issue The address of the corporation s initials registered office and the name of the initial registered agent The name and address of each incorporator After the initial step of filing the articles of incorporation there will need to be Corporate by Laws which are a detailed set of rules The rules in bylaws outline exactly when the annual shareholders meeting will be held how any special meetings will be called and any other rules specific to the said corporation The next step would be to hold an organizational meeting which is held after the articles of incorporation are filed and may consists of the initial decisions of the business such as issuance of shares contracts Business Entities Laws Paper 4 hiring employees setting salaries and the authorization of filing necessary documents for compliance of government licenses and choosing an accountant for the filing of taxes since corporations require more complicated income tax statements and the laws applicable to corporations can change year to year so it is best to have a professional file taxes for the business In the above scenarios were examples of what it takes to form a business in the upcoming scenario superficially it will be demonstrated what laws are applicable in the running of a construction company and the laws regarding the hiring of employees in a fair and honest way free of discrimination The scenario is Construction Scenario Mei Lin is the hiring manager for Surebuild Inc a new construction company She has advertised a position as a jackhammer operator The position s description states that the successful applicant must have a high school diploma The following people apply for the position Michelle 35 who appears to be pregnant is a high school graduate and was formerly employed as a jackhammer operator Eric 55 who is experienced with a jackhammer but has no high school diploma Felipe who is 38 speaks no English has no high school diploma but is experienced with a jackhammer and Nick 23 a college graduate who is epileptic and has no experience with a jackhammer Breaking each of these situations down Mei Lin must meet the requirements of the job posted which is for a jackhammer operator with a high school diploma is vague at best and Mei Lin cannot discriminate against an applicant under the civil rights act of 1964 called title VII which states an employer cannot discriminate on the basis of race color religion sex or national origin Business Entities Laws Paper 5 Mei Lin cannot discriminate against Michelle the woman Mei Lin is assuming is pregnant as she does have experience as a jackhammer operator and a high school diploma and as a woman she is considered a protected minority and if Michelle is indeed pregnant she is protected under the Pregnancy Discrimination Act The construction company should be an equal opportunity employer which protects qualified workers the only recourse of the construction company would be because Michelle is pregnant she could put her unborn child at danger but as an employer you do not have the right to ask if Michelle is pregnant Nick who is a college graduate who is epileptic and has