Business Entities, Laws, and Regulations - Term Paper Example

The next step is to fulfill these legal formalities by complying with the mentioned regulations and lastly to keep a track of the time period for submission of the taxes and trademark fees to remain eligible for the protection and enforcement rights (‘Business’, 2011). In the United States, there are various options for owning the rights in a business. The SBA website of US Government highlights that apart from sole proprietorship and partnership form of business entity, one can form a Limited Liability Company (LLC), non-profit organization, S corporation or a cooperative (‘Follow’, 2011).

Each of these business ownerships require that it should be registered with the government within a stipulated time frame. 1.2) Trade Name/ Trademark Search According to the United States Patent and Trademark Office, the business entity has to apply for trademark availability search. Once the desired trademark has been allowed for adoption, the trademark is applied for registration in the name of the applicant. The registration of the trademark acts as a legal document which authorize the owner to use, manufacture, export, import, sell, license or assign the trademark and goods under the trademark for a defined period.

Those cases where the trademark used is the ownership of another applicant would be considered an infringement of intellectual property rights which is penalized. Therefore, it is important for the business to take a thorough check of the availability of the trademark before the founding of the business entity. 1.3) Taxation The US Government have laid down the various taxes which a business entity has to pay on a frequent basis to remain legalized. An import or export business has to pay custom taxes, excise duties, and other related taxes upon every consignment or shipment of cargo.

The restaurant business however, is required to charge sales tax on each order and to file the sales tax returns along with business tax returns every fiscal year. Additionally, there are property and automobiles taxes which have to be paid accordingly. 1.4) Insurance The insurance is a necessary part of a business in the modern times. Particularly, in the import or export business the law requires that each consignment is fully insured to remain protected of the future unprecedented occurrences. 1.5) Risks Business involves risks.

However, one has to identify them and take necessary precaution to avoid any losses. 1.5.1) Failure: In a newly launched business of a restaurant, the first and primary risk is of failure in business which ends up in winding up and withdrawal from the market. Due to high competition in this field and high demand of quality food, there are high risk factors that signal towards loss. Nevertheless, the sports bar concept act as a competitive edge to the business and can help it to remain afloat. 1.5.2) Entry of New Competitors: Other risks include the copy-cats or the entry of new competitors in the business copying the similar method of forming a sports bar with a different and advanced style.

This is the most expected risk in a business which is the driving force for strengthening or failure of the business. 1.5.3) Lowering of Profits: Another risk is of increase of competition leading to lowering of