Response to K Harps Thread

 

Hello Betty,

I am writing to you concerning your idea of opening up a new business. Your idea of venturing in a Christian coffee house in Belmont, North Carolina is excellent. As a lawyer I would like to advice you on the form of business ownership you can consider. Venturing in business is a challenge and requires patience. You should not give up once you start a business. I would like to encourage you with a scripture in the book of Hebrew 6:12 that says

“That ye be not slothful, but followers of them who through faith and patience inherit the promises”

I would to talk about the different business organization you can consider as you venture in business.

The first one is sole proprietorship. This is a form of ownership that is easy to start. You will be the sole owner of the business.  It is least expensive as legal requirements are minimal.  You will only need to obtain a license that is required by the state or local government (Kubasek, Brennan & Browne, 2012, p. 437).  For this form of organization, you will have control of your business. The most important of all is that you will enjoy all the profits. It is also easy to dissolve your business any time you will feel like.  However, Betty I would like you to consider that this form of ownership has shortcomings. You will suffer all the losses as well as be responsible for all personal liabilities. You will also pay all taxes on all profits.  Sole proprietorship is governed by General Statute of North Carolina Section 66-68.  This statute requires the business owner to have a certificate of registration and is filed.

The second form of organization you may consider is partnership. I have learnt that there are other people interested in forming a partnership with you.  You may think that partnership is best for you since you have potential partners. Betty, I would like to let you know that partnership is made of willing individuals who want to carry out business activities as co-owners.  I advise you to do more research on this form of partnership.  It is easy to start this business when a contract is between two people. Cost is shared therefore not expensive. Management skills are rampant and wide range of customers can be reached. On the other hand each partner has unlimited liability. Their personal assets can be claimed in case of bankruptcy. Each partner is taxed on their share of capital and partnership can be dissolved at any time (Pride et al, 2012, p. 114).

The third option can be Limited Liability Company (LLC).  Betty, as you know, this is the most popular form of business ownership. In this form of ownership, partners can enjoy same limited liability that shareholders in a corporation have but retain the status in a partnership (Kubasek, Brennan & Brown, 2012, p. 469).  In this form of ownership, it is necessary to note that loss is limited. The company can continue operating even after the death of one member. However, there is a long process followed in order to start this form of business.  There are basic steps requires such choosing a state where the company will operate, selecting a name, and delivering articles to the secretary of state. In North Carolina, you will find this in Chapter 57C of the statue that governs LLCs.

Choose a partner who has passion for business. People who can have positive contribution are required. You can consider eliminating Alice who wants an excuse just to be away from home. The other partner you said was Erma. She is a non Christian who only wants profits.  The bible teaches in Amos 3:3 that two people cannot walk together except they are in agreement.  You should consider John as your partner as he is your husband and is not interested in managing or operate your business.

Finally you would consider operating as a franchise. By this you will have to reach an agreement with a franchisor and use their name and trademark.  This increases brand awareness as well as improve corporate image.  Franchise companies offer training therefore it would be easy to succeed in business. However, franchises are expensive and one is charged for using the trademark (Bradach, 1998 p. 31).

I believe you should consider Limited Liability Company as your option. I searched the name you gave me “Gathering Place” and it is registered. You should consider looking for another name for your company.