Business entity selection and taxation liability considerations

Legal Environment of Businesses:

Legal Environment of Extermination Business:

As a wealthy investor who plans to start a chain of exterminating businesses across the United States, there are several laws and regulations as well as risks that Frank must take into consideration. Frank can open a chain of exterminating businesses by either developing the business enterprise as a new startup or purchasing a pest control franchise. The first step for Frank would be to contact the government agency that regulates this industry in the states where he wants to begin operations. This is because each state has specific certification and licensing requirements that businesses must comply with. Generally, the United States Environmental Protection Agency is responsible for enforcing federal pesticide regulations. In setting up the businesses, Frank should ensure that his employees fulfill the state legal requirements and regulations regarding their work.

As required by the Federal Environmental Pesticide Control Act, Frank should ensure that all pesticide products are registered with the Environmental Protection Agency and categorized for general or limited use. The most suitable business entity for exterminating business is purchasing a pest control franchise though it increases startup costs. Entering this business through a franchise rather than developing an enterprise as a startup is beneficial because of the support and recognition associated with such franchises. One of the major risks that the business should protect against is the health risk associated with pesticide use ("Occupational Outlook Handbook," n.d.). Therefore, pest control workers should adhere to the strict guidelines while using pesticides to avoid health risks.

Legal Environment of Birth Clinics:

Birth clinics or centers are health facilities or institutions, which are not hospitals but can be in a hospital where births take place through normal or uncomplicated pregnancy from the mother's normal residence. After completing the educational and experiential requirements for licensing as obstetricians, there are various legal requirements that Akiva and Tara must consider when starting a birth clinic. First, the clinic should have a governing body mandated with various tasks including supervising the general operation and maintenance of the clinic. This governing body is also responsible for providing personnel, equipments, supplies, facilities, and services to mothers and families.

Akiva and Tara also need to have a clinical staff, which is responsible for developing and adopting bylaws subject to the governing body's approval. These staff members are required to hold current state licenses whereas the two proprietors have hospital obstetrical privileges. Some of the other legal considerations for starting a birth clinic include determining the design for the center, local fire and safety procedures and the necessary equipments for providing maternity care ("APHA Guidelines," n.d.). In most cases, a birth clinic always provides a homey birth experience for mothers because they attend to low-risk pregnancies and are usually freestanding buildings.

Akiva and Tara need to ensure that their birth clinic adheres to the state regulations in which they want to operate because these regulations are critical for accreditation. According to the Commission for the Accreditation of Birth Centers, there are strict regulations for birth clinics to be accredited as centers for normal birth. Some of these guidelines that Akiva and Tara should consider include aspects like interrupted fetal monitoring during labor to permit mothers full mobility. Given that they plan to take out a large loan to finance start-up costs, the most suitable business entity for them would be a freestanding center with amenities like showers, lighting, and whirlpool tubs. As a freestanding birth clinic, the major risk to protect against in this business is attending to uncomplicated pregnancies. In this case, Akiva and Tara need a hospital backup, which they can refer cases of complications that occur during labor and necessitate intricate care.

Legal Environment for Construction Business:

The construction industry in the United States is one of the country's largest industries because of the various opportunities. While this business provides more entrepreneurial opportunities than others, it requires more than foundational handyman skills for an individual to become a competent tradesman and business owner. This is because starting and developing a construction business or company requires certain basic regulations that should be followed. These regulations are necessary regardless of whether it is a home improvement or all-purpose constructing business. The most essential requirements to obtain when starting the business include determining the financing, understanding zoning laws and understanding the federal and state business registration guidelines.

Based on regulations by the state and local governments, a license is a pre-requisite requirement for conducting business in the state where it is issued. Determining license and permit necessary for a particular construction business is critical because permits contain specific requirements. To determine a license and permit for the business, it is important to choose a legal structure for the business. The selection of a legal structure is very important because it has significant financial implications that range from taxation to personal liability. Some of the available legal structures include general/limited partnerships, sole proprietorships, corporations, and limited liability companies.

The other legal requirement for a construction contracting business is applying for surety bonds through a bonding agency or surety company (Beesley, 2010). Through the surety bond, the bonding agency or Surety Company promises to pay in case the business does fulfill obligations within a specific contract. It is also important to consider various business insurance options when starting the construction contracting business. This business insurance ensures that the business entity is liable for on-the-job accidents and includes general, compensation and professional liability covers for employees.

Hiring workers is an important facet for a construction contracting company because of regulations on insurance, social security, and taxation. For Surebuild, Inc. The decision-making process should be in compliance with various employment laws and regulations like academic requirements, experience, and equal employment opportunity. The company should not discriminate applicants based on their gender, disability or current status but rather offer equal employment opportunities to all applicants. Therefore, employing an applicant depends on whether he/she has academic requirements and experience.

For Michelle, the company should note her academic qualifications and recognize her experience. While they should not discriminate her because of the pregnancy based on the Pregnancy Discrimination Act, they may fail to hire her if this situation may interfere with her performance of essential job tasks. Because a high school diploma is a necessary condition for the job, hiring Eric may be impossible despite of his experience though the company can decide otherwise if Eric can get the diploma while working (McAllister, 2010).