17.08.2019-480 views -Coach Law Example 4
Running Head: Case Study #4
Jean S. Hamby
Liberty University or college
Betty Wilson has chosen to open a coffee shop which is considering various options including franchising, sole proprietorship, joint venture, organization and alliance. In addition to determining the very best legal entity to form, Betty has to assess if she will utilize or acquire various friends. Finally, the lady plans to mention the coffee shop The Gathering Place and must see whether the brand is available and a good choice. This kind of paper is going to evaluate the pros and cons of various organization options, treat the dilemma of who to hire and determine if The Gathering Place is a viable strategy to the name of the coffee shop. Legal Business Analysis
When forming a business, the owner or owners have many legal choices to consider. Before selecting one type of business formation over another, the owners must look into the advantages and disadvantages of each legal entity to look for the most practical option. To help Betty, for making her decision; sole proprietorship, joint venture, alliance and franchising options will be evaluated. Sole Proprietorship
A sole proprietorship can ideal be described as a business entity with only one owner and that owner has full control of supervision decisions. Commonly, a sole proprietorship may be formed with very little expense or time spent. Essentially to create a sole proprietorship the owner is at business when the required permit are obtained. While timeliness and cost effectiveness are advantages of this type of organization formation, an important disadvantage is usually that the owner presumes unlimited personal liability for virtually any liabilities sustained by the business (Armstrong & Permenter, 2011). Another drawback is that must be proprietorship can be not a separate entity the owner is responsible for every tax obligations associated with the organization's profits (Kubasek, et 's., 2012). Relationship
A collaboration is considered " a voluntary association of two or more individuals formed to continue a business since co-owners pertaining to profitвЂќ (Kubasek, et. ing, 2012, s. 437). A lot like proprietorships, the partners assume liability to get the company's taxes liability. An over-all partnership is similar to a single proprietorship in that the business partners assume complete personal legal responsibility for the liabilities in the business. In a limited alliance however , just one partner is required to be a standard partner. Additional partners can reduce their particular risk simply by becoming limited partners. A small partners' responsibility extends simply to the degree of the spouse-to-be's financial expense in the business. In addition , limited partners traditionally make a dividend or returning on their expense. Corporation
Although the types of corporations are numerous, in a macro level organizations can be grouped as widely or carefully held. A closely kept corporation is definitely one that can be privately owned and stock is not really traded on any of the exchanges (Kubasek, ainsi que. al, 2012). Privately owned corporations have one main or more owners, who typically also actively participate in managing decisions and day to day operations. On the contrary, the ownership of publicly organised corporations changes with every transaction that develops on the secureness exchange where the organization can be traded. Owners, also commonly referred to as shareholders, do not definitely participate in the management decisions of the business. For the purposes of advising Betty, Subchapter S i9000 corporations and Limited The liability Corporations will probably be considered (both will be thought to be carefully held).
Subchapter S Organizations. A Subchapter S firm (" T CorpвЂќ), is an included organization that operates just like a corporation. A vital advantage into a S Corp is that the organization is not subject to company level taxation (Owen, 2008). Instead pertaining to income tax reasons, the business is definitely treated for a...
References: Armstrong, J., & Permenter, M. (2011). The huge benefits of an designed practice. Optometry вЂ“ Journal of the American Optometric Relationship, 82(12)-770.
Bretsen, S. (2008). The creation, the kingdom of god, and a theory of the dedicated corporation. Christian Scholar 's Review, 38(1), 115-154.
Kubasek, N., Brennan, B., Browne, M., (2012). The Legal Environment of Business: A Critical Thinking Strategy. New Jersey: Pearson Education, Inc. (Original function published 1999).
Nyadzayo, Meters., Matanda, M. & Ewing, M. (2011). Brand interactions and brand equity in franchising. Professional Marketing Supervision, 40(1), 1103-1115.
Owen, S i9000. (2008) A random walk through the Subchapter S minefield. Journal of pass through agencies. 21-50.