Business Entity Case Study

The Americans with Disabilities Act (ADA) “prohibits discriminating against an individual in the selection process” (Moran, 2014, p. 32) due to a potential disability. A disability can be defined as a mental or physical condition that can result in some sort of handicap. As a result, the employer may be required to accommodate the people who are considered as disabled, to help them perform his or her job duties.

There are three types of business entities: sole proprietorship, partnerships, and corporations. Sole proprietorships are businesses owned by an individual person. They are easy to form, but are not taxed. Instead the individual business owner is taxed on any monies acquired on behalf of the business (Kubasek, 2012. Partnerships are businesses that are owned by more than one individual owners. The big thing about partnerships is that each partner is personally responsible for the acts of the other partners in the business . (Kubasek, 2012 Corporations are businesses owned by multiple people to include shareholders (Kubasek, 2012). They can sue and be sued and are subject to a host of rules and regulations set forth by the government.

Forming a business entity requires a great deal of knowledge before any decision is made. There are advantages and disadvantages to each entity and without proper understanding of what they are, individuals could make costly errors and forfeit crucial perks that would be in the businesses best interest. In the situation in New State, Alex, Bill, Carl, and Devon have inherited their father’s operating organic farm and seek advice, in regards to which form of business organization would best fit their particular criteria. They have emphasized their immediate concerns, wants and needs from a business standpoint, but also stress their strong faith to uphold and operate in accordance with the Christian worldview. Their criteria is as follows, (1) create an entity which averts formalities or complexities, (2) develop a structure allowing cousin Xavier to handle the day-to-day, (3) minimize taxes on the entity, (4) avoid any personal liability, (4) keep business in the family only, (5) remain in accordance with the Christian worldview, (which will be the final topic in this discussion). After reviewing all criteria, it will be advised that forming a limited liability company (LLC) and electing for an S corporation status would be of best interest for the family. Discussed below, is the strengths and weaknesses of each form of business organization as it applies to their unique situation, to help better understand why an LLC/S corporation, is the best form of

When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as

“Americans with Disabilities Act of 1990 Title I does not allow any private employers, local, and state governments, labor unions and employment agencies from discriminating against qualified individuals with disabilities in job application procedures, firing, hiring, job training, advancement and other terms, privileges, and conditions of employment” (The U.S. Equal Employment Opportunity

My reason for saying that is there is really no indication as to how qualified the applicant was for the actual job. A question that immediately came in to my mind was if the applicant was a good fit for the job? If she did not need the modifications in the office would she be hired? Were there more qualified applicants? I know this scenario was put in place to display and make us students analyze the Americans with Disabilities Act of 1990 but personally just because you have a disability does not mean you should be granted a job and vice versa. Honestly this is a very broad scenario that focuses on the handicap and not the actual talents of the person.

Besides the sole proprietorship after reading I learned about three basic types of business organizations known as limited liability (LLC), partnership, and corporation. Sole proprietorship is a “business owned and operated by a single person. The business has no separate legal existence from its owner.” (Rogers, 2012) In the textbook it said “Partnership is an association of two or more competent persons to carry on a business as co-owners for profit. The business itself is not a legal entity.” (Rogers, 2012) The law says competent means a partner having contractual capacity and a partnership where each partners simultaneously a principle and agent. You can partner up with a minor but be wise to emancipation or be cautions because minors can void partnership agreements. Partners of a business are owners and managers automatically unless specified otherwise by partners but according to the law they presume equal rights. “Note that while there can be unprofitable partnerships, there is no such thing as a nonprofit partnership. The partners must intend to make a profit.” (Rogers, 2012)

Jeb and Josh can be employed by their LLC. The tax deductions available to the LLC are plentiful: medical expenses, pension plan, business trips and entertainment. There are more sources of capital for an LLC than for a sole proprietor and partnership. With an LLC Jeb personal creditors’ cannot sue the company, and Josh is not liable for Jeb’s personal obligations. This business should protect the members’ personal asset from a lawsuit resulting from Jane’s injuries.

In the United States, almost every employee is to protected under federal employment and anti-discrimination laws. These laws make it unlawful to discriminate against a variety of groups that have historically been subjugated to unfair treatment. The major federal anti-discrimination law is Title VII of the Civil Rights Act of 1964. This law prevents discrimination on the basis of race/color, sex, religion, or national origin. It also prohibits retaliation against an employee for asserting their rights under the law and applies to all term and conditions of employment, including hiring, firing, promotion, compensation, and assignment decisions. Additionally, the equal pay act mandates that men and women must receive the same pay if they perform the same work. The Age Discrimination in Employment Act prohibits discrimination against those who are 40 years or older. For individuals with a disability, the Americans with Disabilities Act protects them from discrimination and also provides additional requirements, such as reasonable accommodations. In addition to these federal laws, state laws vary greatly in terms of accommodations in the workplace and the protection they provide to employees. These laws may vary greatly from state to state and many extend similar protections to groups that are not covered by federal laws. These rules place significant regulations on how employers can make decisions on hiring and other terms of employment but many factors affect this complex

69). In scenario A, the Hispanic female meets all the qualifications for the position she applied. She also has a great work ethic and has a positive attitude. Although she may have a speaking problem or have an issue on translating sentences in the work place, as the hiring person, I have to take into consideration that what is the policy for language, is the courthouse in English only or not? As the hiring person, I can’t deny her the position because of her race or gender because that would go against Title VII of the Civil Rights Act. It would be an unlawful employment practice for an employment agency to fail or refuse to refer for employment, or otherwise to discriminate against, any individual because of his or her race, color, religion, sex, or national origin, or to classify or refer for employment any individual on the basis of his race, color, religion, sex, or national origin (eeoc). I can’t deny her the job of the speaking problem. It’s going to be hard for lawyers and litigants to understand the female who isn’t fluent in the English language. They are going to interact with her all day and it would be a problem as they file papers in their cases, check on the status of proceedings, and ask other case-related questions (Janicik, 2017). As the hiring person I wouldn’t deny her of the interview but I definitely not going to hire her and would

A partnership is the best form of business given Shania’s situation. She has support from all angles that want to help her Christian coffee shop be a success. A limited liability partnership is best suited for Shania because of her possible partnerships with her husband, sister, and neighbor. According to the Limited Partnership (2015) article, this form of business is a “voluntary association where one or more partners contribute capital only, and those partners play no role in management.” Her husband wanted to make a contribution to Shania’s business but not in the lane of management, so by using this partnership he can still contribute his capital and maintain his partnership. The liability is limited to the amount of capital that the partner contributes. As a “silent partner” Marvin can make investments with the company, but not have any voting power or control over day-to-day operations.

According to the Office of Disability Employment Office, “The Americans with Disabilities Act (ADA) is a landmark federal law that protects the rights of people with disabilities by eliminating barriers to their participation in many aspects of living and working in America. In particular, the ADA prohibits covered employers from discriminating against people with disabilities in the full range of employment-related activities, from recruitment to advancement, to pay and benefits”(“ODEP”, para. 1). With this being said, it is important to remember the main focus for this Act is that it to allow protection for

“In Uniform Commercial Code (UCC) minor changes do not have any impact and the original contract does not get canceled. The quantity is the main focus of the term in UCC. Offers made by a firm are irrevocable if the deal is made in writing in UCC” (UCC vs Common Law, 2014). “Uniform Commercial Code is a statutory law for certain types of commercial transactions, including sales of goods, which has been adopted by all 50 states. Many of its rules are similar to Common Law, but it

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.

In relation to the situation, the following data is also pertinent: “Employment discrimination is prohibited against "qualified individuals with disabilities." This includes applicants for employment and employees. An individual is considered to have a "disability" if he or she has a physical or mental impairment that substantially limits one or more major life activities, has a record of such an impairment, or is regarded as having such an impairment. Persons discriminated against because they have a known association or relationship with an individual with a disability also are protected.