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How to Start a Business according to Christian Principles

Last reviewed: October 8, 2020 ~9 min read

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 to having a good name is that it stands out and enables one to differentiate oneself from what others are doing. Gathering Place is not a bad name as it is wholesome and sounds inviting—but it does not do much to indicate that it is a coffeehouse or a Christian environment. Thus, Shania could possibly do better at indicating what the nature of the company is and what type of environment one can expect to find there.
Taking a Biblical Perspective on Who Should be Involved
For determining which interested persons Shania should include in her business, in what roles and why, Shania has some perhaps tougher decisions to make. First, it is necessary to begin with her husband, who does not want to manage the business but may put up money as an investor. Does Scripture indicate that this kind of arrangement could be a problem? After all, the bible stays that wives should “obey their husbands” (Ephesians 5:22)—and how can Shania do this if her husband is not interested in having anything to do with management of the business? At the same time, the bible also says that husbands should “love their wives” (Ephesians 5:25). Thus, Shania should feel confident and secure that her husband loves and trusts her enough to manage the business on her own. If he does not want to take part in the management it is probably because he is 1) not interested in managing a coffeehouse, and 2) confident that Shania will know how to manage it best since it is her idea.
1 Timothy 2:15 states that women are saved through childbearing, “if they continue in faith, love, and holiness with propriety.” While Shania is not pregnant in this case study, bringing a business into the world could be seen as like giving birth. She is bringing into existence an entity that did not exist before she gave it life. Thus, it is appropriate to consider the coffeehouse in the same sense as that which Timothy gives to childbearing. And what does Timothy say about it? He states that the woman should continue in faith, love and holiness with propriety. This means that she should not doubt in God’s grace or support even if the process of starting and operating a business becomes difficult. She should maintain her love for others throughout the most trying periods. She should proceed in holiness, devoting herself to the good will of God at all times. And she should set about the business with good manners. If she follows the principles laid out by Timothy, she will not come to any harm.
However, there are others who are considering working with Shania. There is Shania’s sister Kelsey, who is a new Christian and is looking for an excuse to get out of the house. She sees Shania’s business as an opportunity to escape from her life at home. The problem here is that Kelsey’s husband wants her to be a stay-at-home mom. Kelsey should obey her husband, as St. Paul points out in Ephesians. At the same time, her husband should show her love and recognize that his wife needs some time out of the house to maintain her sanity. The two of them might benefit from a mutual understanding of Ephesians 5:22-33, and Shania could possibly assist them in that understanding as a mature Christian.
Then there is Carlos who is not a Christian and does not understand that the Mormon religion and Jehovah’s Witnesses are no more Christian than he is. He lumps them all together in the Christian camp, without really understanding that they are quite distinct from Christianity. He means well and sees an opportunity to make money for himself, but if the coffeehouse is going to be a Christian coffeehouse, it should have Christian influences—and Carlos neither brings that nor does he have a sense of what kind of Christian partnerships would be possible in the community. Does this mean Carlos should not be offered a job? No, not at all: Carlos is a neighbor and Scripture shows that the second greatest commandment is that man love his neighbor as he 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.
References
Kenton, W. (2019). Limited partner. Retrieved from https://www.investopedia.com/terms/l/limited-partner.asp#:~:text=A limited partner is a,are often called silent partners.
Murray, J. (2019a). How to file articles of organization. Retrieved from https://www.thebalancesmb.com/how-to-file-articles-of-organization-for-an-llc-397776
Murray, J. (2019b). Which business type is best? Retrieved from https://www.thebalancesmb.com/which-business-type-is-best-for-my-company-397542

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PaperDue. (2020). How to Start a Business according to Christian Principles. PaperDue. https://www.paperdue.com/essay/how-to-start-business-according-to-christian-principles-case-study-2175652

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