Which of the business entities under consideration best accomplishes Shania’s business goals
Brianna Britt
Which of the business entities under consideration best accomplishes Shania’s business goals?
Shania considered several different types of business entities for her Christian coffeehouse, including sole proprietorship, partnerships, corporation, LLC, and joint venture. A partnership would be a bad idea because Shania would be liable for the negligence of any of her partners (Casprini, et al., 2016). A joint venture involves some of the same disadvantages as a partnership. Partners in a joint venture, much like a partnership, also have unlimited liability and there can be difficulty if there are any disputes between the partners (Levi, Perakis, Shi, & Sun, 2020). Corporations are good for tax benefits, but they are a lot more complicated and add extra cost for administrative fees (Casprini, et al., 2016). Based on this, incorporating may not be a good fit for Shania’s business. This just leaves a sole proprietorship or an LLC. A sole proprietorship is the simplest option that would offer the most flexibility. However, Shania would have unlimited liability with a sole proprietorship. The logical conclusion is that the best option for Shania is an LLC. With an LLC, she will not be personally liable for the debts of the company and she will receive the tax benefits of a sole proprietorship or partnership (Murray, 2017).
Is Shania’s name choice available in the State of Colorado? Is the name available as a trademark? Is the name a good choice?
The name that Shania would like to give to her coffee shop is “The Gathering Place”. Unfortunately, according to a name availability search on the Colorado Secretary of State’s website, that name is not available. The name is not registered as a trademark, but because it is not available in the name availability search, Shania cannot use it for her coffee shop. The name she chose seems to be a great name, except it may not be clear enough to tell the consumer exactly what the shop is. A business name should, not only carry a positive meaning, but it should also clearly represent what the business is (Castriotta, Loi, Marku, & Naitana, 2019). Another name that is available in Colorado that still hints at the Christian foundation of the company is “Fellowship Coffeehouse”.
The Bible teaches us in 2 Timothy 2:15 that we should, “Do your best to present yourself to God as one approved, a worker who has no need to be ashamed, rightly handling the word of truth” (ESV). Shania has aspirations of opening her business as a way to honor and respect God. She wants to provide a place for her fellow believers to gather with like-minded people and feel comfortable. This is an admirable concept, imagine if there were more places that believers could gather and enjoy themselves outside of the church. This could also be an opportunity to get those individuals that would not ordinarily go to church a chance to hear a mention of Jesus. Growing up I was taught that we can drop the seeds, but ultimately God does the drawing. Maybe some music will be playing that allows someone to ask a question about our amazing savior. There are endless opportunities when you have a business that ultimately serves the Father.
Which interested persons should Shania include in her business and in what roles?
Shania has several people who are interested in being involved with her business. Her husband is not interested in being involved with the business, except that he is willing to contribute capital to help her get it up and running. Shania should accept the assistance from her husband, but she should not require him to actively participate. If Shania pressures her husband to get involved in a more active role, it would probably cause the couple to begin fighting. The Bible instructs us in Proverbs 21:9 that, “It is better to live in a corner of the housetop than in a house shared with a quarrelsome wife” (ESV). Married couples should have respect for one another and be understanding of the differences between their interests.
Her sister, Kelsey, would like to be involved as a new member of the Christian faith, but her husband does not want her to get involved. I do not believe that Shania should allow her sister to be involved in an active role because it would likely cause problems for Kelsey’s marriage. 1 Corinthians 7:39 says “a wife is bound to her husband as long as he lives” (ESV). Regardless of the difference in beliefs between Kelsey and her husband, their union should not have interference from Shania or her business. Perhaps Shania could seek advice from her sister or allow her to participate in a small role that would not take her away from her duties to her husband and children.
Shania’s neighbor, Carlos, is also interested in getting involved with her business. His motives are earning money from her idea. Carlos is a non-believer who believes that Shania’s idea will be popular based on the religious population in their area. It seems as if Carlos is interested in exploiting the faiths of the community to benefit himself. Shania should not allow Carlos to be involved with her business. 2 Corinthians 6:14 warns, “Do not be unequally yoked with unbelievers”. This means that, as Christians, we should not make partnerships with non-believers. In Shania’s case, these words should be followed mainly because one of the purposes of her business is to give honor to God. Bringing someone in who would exploit believers would do the opposite.
Based on Shania’s circumstances, I believe she should not bring any of the interested parties into her business. She should either go at it alone or seek out someone else to go into the business with her. Minus receiving financial help from her husband, if she does not feel that she can do it without help from others, she could inquire at her church or in the community to fine other interested parties whose faith is more aligned with hers.
References
Bible Gateway. (n.d.). June 28, 2021, https://www.biblegateway.com/versions/English-Standard-Version-ESV-Bible
Castriotta, M., Loi, M., Marku, E., & Naitana, L. (2019). What’s in a name? Exploring the conceptual structure of emerging organizations. Scientometrics, 118(2), 407-437. https://doi.org/10.1007/s11192-018-2977-2
Levi, R., Perakis, G., Shi, C., & Sun, W. (2020). Strategic capacity planning problems in Revenue?Sharing joint ventures. Production and Operations Management, 29(3), 664-687. https://doi.org/10.1111/poms.13128
Murray, J. H. (2017). Beneficial benefit LLCs? University of Cincinnati Law Review, 85(2), 437.
Casprini, E., D’Antone, S., Paranque, B., Pucci, T., & Zanni, L. (2016). I choose my business model! A cross-national analysis of business model choice in family firms. EuroMed Journal of Business, 11(2), 212-231. https://doi.org/10.1108/EMJB-06-2014-0017
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