Paper type: Essay Pages: 4 (833 words)
In order to open a business there are many details that need to be determined to protect the owner before opening. The parts of the business that need to be determined are: the legal form of entity, control of the business, taxation, and financing. The business I want to open is a full service Italian restaurant. The name of the restaurant will be Tony’s Italian Restaurant. In this paper I will explain the details of my business and discuss the Construction Scenario.
Tony’s Italian Restaurant My brother and I have always dreamed of owning a restaurant.
Throughout the years I have thought about this business and am excited to open this restaurant soon. The business will be two restaurants in one building. On one side there is a full service restaurant with a bar and on the opposite side there will be a pizzeria. The pizzeria will be a delivery and pick-up service only. Legal Entity Tony’s Italian Restaurant will be a Limited Liability Company (LLC).
Forming our restaurant as an LLC will enable both my brother and I to operate, manage, and control the business. This way we can each manage different aspects of the company.
We will also be able to have an equal share of the business. Financing of the business will be owner invested and different small business loans available through the government and small business association of our town. The owners of the restaurant will each invest equal amounts of capital into the company in order to keep everything uniform. For tax purposes, an LLC works out the best for my brother and I. We will be able to file taxes as a partnership and meaning the income or losses from the company will be split between us and filed on our personal taxes.
This ensures us that we are not taxed twice. The most important advantage to forming an LLC is the liability issue. With the business as an LLC, we are not personally liable for any debts, obligations, or torts that come from the business. In order to register our business in the state, we must submit an article of organization to the secretary of the state of Virginia. Laws and Regulations The business being a restaurant will have to follow many different laws and regulations. Regulations concerning the serving of alcohol, serving food, labor laws, paying taxes are all included in this business.
The regulations regarding the serving of alcohol include: obtaining the proper license, the proper identification procedures of customers, serving hours, and ages of servers. Of course in a restaurant you have many laws and regulations concerning food preparation and serving. The local health department will make frequent visits to make sure the restaurant is up to par regarding the food. The business will need many employees to make the restaurant successful. The labor laws are very important to follow.
From pay rates to overtime, as well as laws for minors and proper identification for hiring, the laws are necessary to follow. There are also state and local taxes that need to be paid on a regular basis. Any violations of these laws and regulations could cause the business to be shut down. Risks of Operating a Restaurant As with any business, there are many risks when operating a restaurant. The biggest risk is food poisoning. Being experienced in food service, I will be able to put safeguards in place to eliminate the risk of food poisoning.
Other risks include injuries to customers, unhappy customers, and lack of business. I believe that most of the risks involved in operating a restaurant are controllable. There will much attention to detail when it comes to this topic. Conclusion With the information I learned from the Business Law class, I believe I am one step closer to fulfilling my dream and opening my own restaurant. Choosing the proper entity, abiding by the laws and regulations, and eliminating the risks are great steps to opening a business.
Construction Scenario In the construction scenario, the most important aspect is to adhere to the job requirements. The posted requirements are having jackhammer experience and a high school diploma. Michelle has jackhammer operator experience and a high school diploma. She is a perfect candidate for the job. The fact that she is pregnant should have no affect on the hiring decision unless the use of the jackhammer will have a negative effect on the pregnancy. Eric has jackhammer experience but no high school diploma.
Since the requirements list a high school diploma, he is eliminated from the position. Felipe also has no high school diploma but has jackhammer experience. His is eliminated because of the lack of the high school diploma. Nick is a college graduate but no jackhammer experience. Without jackhammer experience he is also eliminated from the position. The best person for the job is Michelle. If there are no medical risks involved with a pregnant person operating a jackhammer, Title VII protects pregnant people from being discriminated.
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My Ideal Business. (2017, Jan 20). Retrieved from https://studymoose.com/my-ideal-business-essay