Business Entities, Laws, And Regulations Paper

Business Entities, Laws, And Regulations Paper

Business entities, Laws, and Regulations Paper
Dolores Mendoza
Bus Law/415 University of Phoenix
August 2, 2010

Business Entities, Laws, and Regulations Paper
In business entities it is important for business owners to realize what kind of business is going to be opened.   What kind of partnership, C Corporation, S Corporation, sole proprietorship, limited liability company, or any other type of business organization.   In this paper we will look at the restaurant and bar business, professional practice, and construction business.   We will touch on laws and regulations that affect these businesses, as well as risks and laws that must be followed in order to stay in business.   A business that offers incentives to its customers and agrees that the customer is right will be able to stay in business.  
In recent years, the number of new limited liability companies, have nearly equaled the number of new corporations being formed.   Limited Liability Company can provide with some protection against personal liability.   For tax purposes limited liability companies are treated more like partnerships Income losses are reported on the members own personal tax returns.   Limited Liability Company files a form 1065 with the Federal Government.   Limited liability companies get sole proprietorship treatment on limited liability company formed without members is considered a see through entity for federal tax purposes unless the owner request to be tax as a corporation.
Earnings are subject to self employment tax-this is one area where some people will prefer an S corporation, in which profits from the corporation are subject to ordinary income tax but not to self-employment tax.   In many states, lawyers, accountants, doctors and other professionals are not allowed to form limited liability companies.   There is an alternative for these types of business:   Limited Liability Companies are treated similarly to limited liability companies for tax purposes.   There’s no limit...