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Business Entities, Laws, and Regulations Paper

January 17, 2011 Bus/415

This paper will discuss two points. It will start with the process of opening a business and then lead to a scenario discussing the hiring process.

Lou and Jose plan to open a restaurant and sports bar. They would like to provide big screen TVs to their patrons to watch sports in within their facility. They do not have a lot of money to begin their business but have found an investor to go in to starting their Business, Miriam. Lou and Jose need to take a look at the process of opening their business, laws and taxation, the type of business entity, and all possibly liability issues. Lou and Jose would best suit by being a Limited Liability Company (LLC). This would limit their personal obligation to the business as well as their investors. As a limited liability company, Lou, Jose and Miriam are seen as shareholders in the company and do not directly manage the facilities. This would help to being their business venture. They would need to research different laws regarding the restaurant and bar industry. How to obtain a liquor license if needed (depending on the state), what standards need to be followed when serving food, employee laws, and regulations such as OSHA. This standards need to be reviewed and followed closely to prevent any possible lawsuits or tragedies in the workplace. The company must find what type of insurance they would need for possible damages, liability and accidents that may occur within the company, by an employee, customer or nature. Once these steps are taken and followed by Lou and Jose to start their business. They would need to then start their business plan by mapping out what states they plan to open their chain in. From there they would have to get the requirements of law that each state would require them to follow to maintain their company.

With Frank, the wealthy investor that would like to open a chain of exterminating businesses across the United States, he would need to start by finding those interested in doing business for him. Frank would need to look at each state and acquire the laws as far as opening up a business. He would need to open the business as a corporation. As a Corporation, it is much

easier to move and do business in more than one state. Even though the corporation would be officially opened in only one state (Articles of Incorporation) where the company would pay taxes in that state, the company can still operate in other states as well. Frank would need to look into the risks of doing exterminations and what affects exterminating may have on individuals, employees and consumers. He would need to research the different laws regarding employees and taxation in each state. He would need to start by developing a plan to have individuals to assist him in getting the business up and running in each state he would like to have the chain opened in. This process may be long, due to Frank wanting to open up chains across the United States. Since each state has their own set of laws that govern corporations, their functions and taxation, he must research fully to understand what he needs to comply with to open up his business.

Starting a business is not an easy process. It is a long, thought out, costly (at times) and developed process that if done correctly will be effective in the long run. If the process is hurried along, the company may over look items that are important in running the business. Each business is unique to it, but may be able to relate to other businesses that are currently operating. Taking their example and the rights steps would make the business successful and less of possible failure.

In the construction scenario, Mei-Lin has a list of applicants that need to be reviewed. The first one is Michele who is 35, who meets all the criteria set forth in the job description, but is pregnant. Though Michele is pregnant, this should not disqualify her from receiving the job, because based on the job description she is a successful candidate. If the company was to

discriminate against her based on her being pregnant, they could possibly have a lawsuit, because she fits the criteria to be hired for employment. Then you have Eric who is 55, meets experience, but has no diploma. Per the job description, this is one of the criteria, which need to be met, to be hired for the position. Now if Mei-Lin, had put that if no diploma, but certain experience may compensate for the diploma, then he could possibly have a chance. Eric, seeing as that he has not obtained a diploma, would not be a successful candidate for the job. He could not sue the company based on discrimination, because having a diploma was a standard that was set for all applicants, that was a possibility that could be meet by all applicants. Felipe who is 38, has experience but once again no diploma. The fact that Felipe does not speak English was not set as a requirement to perform the job and would be a form of discrimination, based on origin. If he was able to obtain a diploma and then applied for the job, if the company turned him down due to him not being able to speak English, the company could have a possible lawsuit on their hands. With Nick the 23 old college graduate, with no experience and an epileptic, he would qualify for the position, because it only requires that the applicant have a high school diploma. The fact that Nick has a disability should not be a part of his hiring process. Even though he has a disability, the employer should make accommodations to meet those disabilities of an employee. If the company did not hire Nick based on his disability, Nick would be able to file a suit based on the disabilities act.

The scenario shows the different types of applicants one may get when doing the hiring process. Each individual should be looked at differently and taken into consideration based on the criteria set forth by the company when they were in search of a particular candidate. The

company should be aware of any possible suits that could be filed, if they decide not to hire a particular individual based on color, creed, origin, religion, disability, or nationality.