Case Study: Starting and Naming a Business
Starting, naming and managing a business can be difficult. One has to decide how to organize the business, what to name, and who to bring in to help maintain it. Addressing these challenges can be confusing if one is unsure of the different possibilities, such as sole proprietorship vs. joint venture. However, with a little understanding in this department and a little guidance from Scripture, which provides the right perspective on how manage a business, one can approach the process with confidence. This paper will discuss the case of Shania and her plan for a Christian coffeehouse that she wants to name The Gathering Place.

Setting up the Business

If Shania’s husband Marvin is interested in being an investor in the business, the best entity to organize under would be a limited partnership. A limited partnership allows there to be a general partner, who manages the business—this would be Shania—and a silent partner, who simply acts as an investor—this would be her husband. The partnership allows for limited liability benefits for the limited partner, but not for the general partner, who can be sued by creditors for instance. The limited partner cannot incur obligations on the part of the partnership (Kenton, 2019). The limited partnership would be the best option for Shania’s business so long as Marvin decides to become an investor in the business.

Setting up the business as a sole proprietorship would be the simplest way to go about it, if the husband decides against being an investor. However, there is risk associated with sole proprietorships—as there is, of course, with being a general partner. If Shania wants to minimize her risk, she might consider organizing the business as an LLC, which would limit her liability; however, she would need to establish and register the Articles of Organization with her state (Murray, 2019a). The Articles typically require a description of the company, the name of the person managing it, the name of the registered agent who sends and receives official paperwork for the LLC, the address and the organizer (Murray, 2019a). Shania can set up the company as a single member LLC (SMLLC), which would mean it is taxed as a sole proprietorship but that it retains the benefits of an LLC (Murray, 2019b). The other options—a joint venture or a corporation—do not make sense for what Shania is trying to do since she is the only one who is going to be running the company. It is unlikely that a joint venture operation would be possible with one of the other Christian organizations in the area, as they compete amongst themselves for parishioners, and the Gathering Place coffeehouse is meant to be non-denominational. It is better for it to be organized either as a sole proprietorship or SMLLC, or as a limited partnership, if her husband is indeed going to become a silent partner.

What Name?

The name Shania is considering is available if she drops the article “the” at the beginning and just goes by “Gathering Place”—otherwise the name is taken and is not available for use (even though the status of the one on file is delinquent), according to the State of Colorado’s business database. There is also no trademark on “Gathering Place,” though there is one that is expired for another organization called “The Gathering Place: A Refuge for Rebuilding Lives.” The name is a good choice, but if Shania wants to emphasize the Christian character of the coffeehouse, she might like to incorporate some aspect of Christian identity into the name of the Coffeehouse. The key...…loves himself (Mark 12:31). Thus, it is perfectly acceptable for Shania to give Carlos a job, even though his non-Christian. The goal of Shania could be to convert Carlos and bring him into the fold of Christianity. That would be a noble goal and one that should could work on without fear.

At the same time, one should be cautious, as St. Paul warns: “Do not be unequally yoked with unbelievers. For what partnership has righteousness with lawlessness? Or what fellowship has light with darkness?” (2 Corinthians 6:14-18). St. Paul delivers this warning because he sees it necessary to remind Christians that they should not compromise their faith for the sake of some perceive worldly good, whether it be to obtain a spouse or to have a stake in a business. For Shania, her goal is to promote the Christian faith in her work, so she would not be compromising her faith by allowing Carlos to work there; she would be showing charity to her neighbor and giving him a Christian environment and influence that perhaps he is missing in his life. So long as she stays true to her Christian beliefs, she will not be going against what St. Paul says to the Corinthians. However, if she finds herself quieting her Christian convictions in order to satisfy Carlos and his unbelief, she should cut ties with him. Christ should not be abandoned for the sake of human respect: the betrayal of St. Peter should teach one that.

Starting a business does not have to be an overwhelming process. If one stays grounded and rooted in the faith, one can overcome all obstacles. The right course of action will always show. The light of the faith can guide the way so long as one remains true to it.