Case Study on The Gathering Place, a Christian Coffee House

Pages: 4 (988 words) Published: April 28, 2015
Introduction
After years of prayer and seeking God for direction, Shania Jackson has made the decision to create and operate a Christian coffeehouse called “The Gathering Place”. She prides herself on her strong Christian beliefs and values so she wishes to run the company in this same manner. Jackson has a few potential employees that she must decide whether they are suitable for her business interest. Her husband, Marvin, only wishes to be an investor but does not want to work for the company. Jackson’s sister, Kelsey, would like to work for her but her husband would prefer that she continued her duties as a stay at home mom. Jackson’s neighbor, Carlos, thinks the idea of a Christian coffee house would sell well because of local demographics and religious preferences. She must also cipher through state regulated laws in order to determine how she will structure her business. Business Forms

Based on brief research Shania has decided to keep her options open regarding the classification of her business. Her research on business forms included: sole proprietorships, general or limited partnership, corporation, limited liability company (LLC), or a joint venture. It is important that Jackson establishes potential partners or investors before making a decision a final decision as this information will need to be included in the businesses articles of incorporation. Jackson has not stated any secured startup capital other than personal money and a potential investment from her husband, Marvin. The CPA Journal suggest that an LLC is a sure way to establish your business because it is a relatively low-cost way to legally establish your business, filing taxes are much simpler and individual owners and operators of the business are secured under liability protection (Hopson, 2014, p.43). LLC Or Corporation informs entrepreneurs to incorporate or form LLCs in order to protect their personal assets from being affected in the case of bankruptcy or other financial...

References: 15 U.S. Code § 1114 - Remedies; infringement; innocent infringement
Franchise.org,. (2010). What are the advantages and disadvantages of owning a franchise | International Franchise Association. Retrieved 24 March 2015, from http://www.franchise.org/what-are-the-advantages-and-disadvantages-of-owning-a-franchise
Hopson, J. F., & Hopson, P. D. (2014). Making the Right Choice of Business Entity. CPA Journal, 84(10), 43-44.
Mancuso, A. (2014). LLC or corporation? How to Choose the Right Form for Your Business (6th ed., pp. 47-50). Berkeley, CA: Nolo.
Welsh, D. B., Desplaces, D. E., & Davis, A. E. (2011). A Comparison of Retail Franchises, Independent Businesses, and Purchased Existing Independent Business Startups: Lessons from the Kauffman Firm Survey. Journal of Marketing Channels, 18(1), 3-18. doi:10.1080/1046669X.2011.533109
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