Introduction
The decision to start a business is not one that shall be taken lightly and should be considered with much thought and prayer. Shania has a litany of considerations to determine before she can even open her doors for her first day of business. Accordingly, Shania must consider what type of business forms she shall fall under, consider a franchise route, her business name applicability, and finally what type of staff she should surround herself with. Like all things, research and faith will be Shania’s guide for her business development.
Business Forms Shania’s first decision is one of great importance, she must select which type of business form to establish her coffee shop under. Kubasek, Brennan, and Browne (2006) state, …show more content…
The business form the best fits Shania’s situation is a limited liability company. According to sba.gov, “a limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership” (para. 1). The funding for Shania’s business venture is provided by her husband; therefore, it makes since that they create a single member LLC to enjoy the simplistic tax filings of a sole proprietorship, assuming that the couple files their taxes jointly (“Limited Liability Company”, n.d.). Furthermore, a LLC provides Shania and Marvin much needed protection from personal liability, should their business go awry, as members are only liable to the extent of their investment (Pozzuoli, Smith, & Pozzuolo, 2008). Lastly, if Marvin desires to become even less involved, Shania may decide to add another partner, which culminates in another benefit of easy sharing of profits (“Limited Liability Company”, n.d.). Limited liability companies provide a perfect blend of the basicness of a sole proprietorship, with the legal coverage of a …show more content…
Shania has come up with a distinct name, but she must ensure that she is not infringing on an established trademark and her business name has not been claimed in the state of Colorado. Overstepping a recognized trademark can carry a tall legal cost for a newly founded business (“Choose Your Business Name” n.d.). A quick web search on the Trademark Electronic Search System will yield a disappointing discovery for Shania, her name was claimed in 2011 by a charitable organization in Colorado [TESS](n.d.). Moreover, an additional search on the Colorado Secretary of State Business Database Search web page, we find that a very similar name is already established, leading to a suggestion of a new name for Shania’s coffee shop [Business Database Search](n.d.). Shania should return to the drawing board and perhaps select a name that is more synonyms with coffee or a café. As long as Shania keeps in line with her business form and affixes the LLC at the end of her business name, she has an abundance of options (“Limited Liability Company”,
The decision to start a business is not one that shall be taken lightly and should be considered with much thought and prayer. Shania has a litany of considerations to determine before she can even open her doors for her first day of business. Accordingly, Shania must consider what type of business forms she shall fall under, consider a franchise route, her business name applicability, and finally what type of staff she should surround herself with. Like all things, research and faith will be Shania’s guide for her business development.
Business Forms Shania’s first decision is one of great importance, she must select which type of business form to establish her coffee shop under. Kubasek, Brennan, and Browne (2006) state, …show more content…
The business form the best fits Shania’s situation is a limited liability company. According to sba.gov, “a limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership” (para. 1). The funding for Shania’s business venture is provided by her husband; therefore, it makes since that they create a single member LLC to enjoy the simplistic tax filings of a sole proprietorship, assuming that the couple files their taxes jointly (“Limited Liability Company”, n.d.). Furthermore, a LLC provides Shania and Marvin much needed protection from personal liability, should their business go awry, as members are only liable to the extent of their investment (Pozzuoli, Smith, & Pozzuolo, 2008). Lastly, if Marvin desires to become even less involved, Shania may decide to add another partner, which culminates in another benefit of easy sharing of profits (“Limited Liability Company”, n.d.). Limited liability companies provide a perfect blend of the basicness of a sole proprietorship, with the legal coverage of a …show more content…
Shania has come up with a distinct name, but she must ensure that she is not infringing on an established trademark and her business name has not been claimed in the state of Colorado. Overstepping a recognized trademark can carry a tall legal cost for a newly founded business (“Choose Your Business Name” n.d.). A quick web search on the Trademark Electronic Search System will yield a disappointing discovery for Shania, her name was claimed in 2011 by a charitable organization in Colorado [TESS](n.d.). Moreover, an additional search on the Colorado Secretary of State Business Database Search web page, we find that a very similar name is already established, leading to a suggestion of a new name for Shania’s coffee shop [Business Database Search](n.d.). Shania should return to the drawing board and perhaps select a name that is more synonyms with coffee or a café. As long as Shania keeps in line with her business form and affixes the LLC at the end of her business name, she has an abundance of options (“Limited Liability Company”,