Business Entities, Laws, and Regulations - Research Paper Example

Business Entities, Laws, and Regulations Venturing into business opportunities requires careful planning and some research on state laws, regulations and licensing. It also involves looking into the business entities, taxation, taking control, and taking liability issues into consideration. When starting up any business, one must have talent, desire and motivation. Starting up a business is an activity that should not just be completed within a night. It begins with drafting a well-thought-out and comprehensive business plan, which will improve the chance for business success. Each business plan requires thorough planning and research. A well detailed business plan contains estimated budget that indicates the amount of capital required to open a business. Each business owner needs to learn all the rules and regulations that are required to protect their investments, and turn their firms into a success. This paper, therefore, discusses three businesses scenarios that include restaurant/bar business, construction business, and extermination business depending on the requirements of starting a successful business. Construction Scenario In this scenario, Mei-Lin is the hiring manager of a new construction company called Surebuild Inc. This corporation has advertised a position of jackhammer operator, and Mei-Lin is facing a challenge of determining the best applicant fit for the job. She wants to treat each applicant equally, and determine the most qualified under the Equal Employment Opportunity Act (Steingold, 2011). In the United States, Equal Employment Opportunity Commission (EEOC) is charged with the duty of enforcing federal laws, which make it illegal to discriminate against an employee or job applicant due to an individual’s religion, race, age, sex, color, race, genetic information and disability (Steingold, 2011). The position of jackhammer operator has attracted four applicants, and Mei-Lin only needs to hire one of them. Erick, who is 55 years old, has an advanced experience in operating jackhammer; however, he does not have a high school diploma. Mei-Lin cannot hire Erick for the job because the job’s advert required the successful applicant to have a high school diploma. Michelle is a 35-year-old high school graduate. She has experience in operating jackhammer, although she is currently pregnant. Mei-Lin cannot choose to discriminate against Michelle just because she is pregnant. She is, therefore, a legitimate applicant for the job. Nick is a 23-year-old college graduate, but with no experience in operating jackhammer. He has epilepsy, and this cannot prevent him from getting this job. This is because the federal law states that no applicant or employee should be discriminated against because of disability (Meiners & Ringleb, 2011). Felipe, who is the final applicant, is 38 years old without a high school diploma, and she does not speak English. She can be dismissed on the grounds that she does not have a high school diploma. The hiring manager can, therefore, choose either Nick or Michelle as the best applicants for the jackhammer operator position. Restaurant/Bar Business Starting up a sports bar and restaurant will be a difficult task for both Jose and Lou. This is because they do not have enough capital, and they will consider bringing in Miriam to provide the finances. This business will, therefore, be formed under the Partnership Agreement Act. In this scenario, Jose, Lou and Miriam will be partners in the sports bar and restaurant, however, daily running of the business will be done by Jose and Lou only. In this partnership agreement, Miriam will only contribute capital in return for a profit. All the partners will have liability and share loses because each of them has something to lose. Most of loses will be directed to Jose and Lou because both of them are responsible for the daily running of the business. Opening sports bar and restaurant business requires food and liquor licenses. The three partners will first need to obtain these licenses, and achieve all the requirements set by their local Health Department. Jose and Lou will need to attend alcohol management and food handling classes. All employees set to work in this restaurant will also need to attend these classes. Jose and Lou will also need to hire security guards to protect their premise and customers. When hiring employees, Jose and Lou should hire trustworthy individuals who are capable of driving the business into success. Extermination Business Frank is a wealthy entrepreneur who wants to start up a chain of exterminating business across the United States. He will open these stores under a sole proprietorship. A sole proprietor is an individual who owns unincorporated business by himself or herself (Meiners & Ringleb, 2011). Opening a sole proprietor business is a risky investment because all the capital comes from an individual’s personal account. In this scenario, Frank will provide all the money required to set up these stores across the United States. He will also need to achieve and pass all state tests and examinations so as to obtain a Commercial Pesticide Applicator License (Meiners & Ringleb, 2011). In addition, he will also need to ensure that his license is recertified every year in order to stay current. If Frank chooses to hire employees to control the stores, then he must also ensure that they pass the state tests and examinations. This is because it will be difficult for employees to work without obtaining the necessary license. Employees must also ensure that safety rules and measures are observed at all times, especially when handling the pesticides around pets and children (Steingold, 2011). Frank can also consider opening a franchise across the United States. This is one of the most effective ways of expanding stores across a given region. Through franchising, Frank will be able to collect profit from the percentages of the franchisees as royalty (Meiners & Ringleb, 2011). A well researched and detailed business and marketing plan is necessary in guiding the business to success. Realtors can help investors in drafting a well detailed marketing plan. Opening stores around Realtors is usually of significant benefit to the growth and success of the business (Steingold, 2011). Franchising will also save Frank from liabilities and taxation, because franchisees are considered as independent contractors. Conclusion Every nation has its own rules and regulations that investors and business owners must observe at all times. Opening a business requires dedication and hard work; however, proper understanding of the prevailing rules and regulations relating to a type of business is a necessity in the growth and success of the business. Business owners have to understand all the elements of owning and running a business successfully, and these include hiring employees, liability and taxation issues, and the state rules and regulations. Business owners also need to ensure that their employees perform their duties efficiently, since this is one of the requirements in ensuring the success of a business. Other than the aspects of owning and running a business successfully, investors also need to have an advanced understanding of federal and state laws of owning and running a business. In the three scenarios discussed above, it is just necessary to have a clear understanding of the federal and state laws, and the other requirements of running a business successfully in each case. For instance, in the construction business scenario, Mei-Lin requires an appropriate understanding of the provisions of Equal Employment Opportunity Act, so as to treat the four applicants fairly. In the bar/restaurant scenario, the three partners need to have an understanding of the rules and regulations of the Partnership Agreement Act. In the last scenario, Frank requires an understanding of the federal and state rules and regulations of setting up a sole proprietorship business. Owning a successful business is what all business owners require, and this can only be achieved when investors have substantial understanding of the rules and regulations that relate to the business. References Meiners R. E, Ringleb A. H. (2011). The Legal Environment of Business. California: Cengage Learning. Steingold F. S. (2011). Legal Guide for Starting & Running a Small Business. New York: Nolo. Read More