Business Entities, Laws, and Regulations Essay

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S corporations must be domestic in nature, issue only one kind of stock, and have less than a hundred shareholders: given that Frank only has aspirations to have a U.S.-based business, this entity type would seem ideal, although he might need some legal help to file as an S Corporation.

Professional practice: An LLC, or limited liability corporation, is the most popular type of entity structure for professional groups such as doctor's offices, accountants, and other small enterprises. As owners, Akiva and Tara would not be personally liable for the debts of the LLC, although constructing the entity is more complicated, legally, than a joint proprietorship. Given the insurance risks of running a birth clinic and the dangers of litigation, anything but an LLC would be unwise. Additionally, in some states, owners are "protected from personally liability from certain acts or misconduct of other partners, employees, agents, or their representatives" in case there are allegations of misconduct (Limited liability, 2010, State of Iowa).

Construction Scenario: Discriminating against an individual based upon the fact she is pregnant is a violation of federal civil rights laws, unless the individual is unable to perform the task in a way that would place an unreasonable hardship on the business (such as Surebuild's need for all employees to begin work immediately).

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"The Pregnancy Discrimination Act amended Title VII of the Civil Rights Act of 1964. Discrimination on the basis of pregnancy, childbirth, or related medical conditions" is prohibited (EEOC, 2010). However, discriminating against Nick, because of his epilepsy, is not in violation of federal law, given the risks that would be suffered by other members on the crew. Discriminating against an individual because of a disability if no reasonable accommodation can be made (such as not hiring a blind person as a pizza delivery driver) is allowed under the Americans with Disabilities Act.

Requiring a high school diploma for a task that does not demand a high school education may also be illegal for Surebuild. Requiring previous experience in using a jackhammer is not, given this directly pertains to the work done by the employee. Using a high school diploma as a requirement in a fashion that has a disparate impact upon a historically-discriminated against group is prohibited by law. However, in the facts presented by the case, there does not seem to be a disparate impact upon a historically-discriminated against group. Both Eric and Felipe lack high school diplomas. Eric has more experience with jackhammers than Felipe......

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"Business Entities Laws And Regulations" (2010, March 29) Retrieved May 13, 2025, from
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"Business Entities Laws And Regulations", 29 March 2010, Accessed.13 May. 2025,
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