Reply to Discussion Board 3

 I need to reply to the discussion board (100 words. Each response must incorporate at least 1 scholarly source to support your conclusions and ideas, as well as Biblical application) listed below, I think it should be a general partnership(my discussion board post) instead of a LLC 

As  Peter and Andrew work to establish their business venture, it is most  reasonable that the company is set up as a limited liability company  (LLC) rather than a general partnership. “An LLC offers its owners both  limited personal liability for actions of the business and special tax  treatment that may prevent what has been called ‘double taxation’ of the  owners’ income” (Choosing a Business Structure, 2019, para. 1). Each  person would hold a percentage of the company based on how much each  individual invested as the startup. 

Each  owner would be responsible for all profits and losses from the company.  Through an LLC, their personal finances and belongings would not be  subjected to lawsuit or claim (Melvin & Guerra-Pujol, 2018). This is  an extra protection measure that would help a small business  and its owners. As the brothers, Peter and Andrew, begin their business  venture, it would be wise of them to only consider Paul for  part-ownership if he was willing to invest  capital. If Paul was unwilling to place capital to become part-owner,  he could be hired as a manager due to his experience in the hospitality  industry. This would give him a base salary plus a bonus structure based  on the job he does and how the business profits. After establishing if  Paul was willing to place any capital in the business, the amount of  capital expected from Andrew and Peter would then be determined. 

The  overall business plan should state how much capital is needed for this  venture. Money should then be assigned a percentage of the overall cost.  As far as donations from churches or religious groups, the money should  go towards benefiting the part of the company they utilize. Thus, these  donations should not go to fund any maintenance  of recreational lands or equipment used to maintain them. The religious  groups would only be utilizing the lodge for retreat purposes.  Providing education that money donated would only be utilized in areas  that would be beneficial to the donors is an important concept to  communicate. 

Profits  and losses of the owners, potentially two or three individuals, would  be based on the percentage of capital of the company each individual  owned. “Profit distributions are not salary. Salary paid to compensate a  person for services rendered to the company gets taken out of business  revenue before determining the amount of profit available for  distribution” (Masters, 2019, para. 1). Paul would not share in the  losses if he was a manager and had not invested any capital to establish  himself as part owner. In this case, he would receive  his agreed upon salary and the bonus structure utilized would be paid  out accordingly by the profits of Peter and Andrew. Their payout of the  bonus would be based on their percentage of ownership of the company. 

John  14:15 (KJV) states, “ If ye love me, keep my commandments.” As laws  were created for structure and protection in the business world, God  gave his followers laws to abide. These laws for Christians are to  instruct us in ways that are pleasing to the Lord. While business law  and Christian laws vary in use, they overlap in ways that show the user  the ethical ways to act. Upholding both business and Christian laws are  important as God wants us to follow him and follow state and national  laws where they are applicable in our professional endeavors. 

References

Choosing a Business Structure. (2019). Choosing a business structure. North Carolina.Retrievedfrom https://www.nc.gov/services/starting-business-nc/business-registration/choosing    business-structure

Masters, T. (2019). LLC & profit distribution. Small Business Chronicles.Retrieved fromhttps://smallbusiness.chron.com/llc-profit-distribution-54720.html

Melvin, S. P., & Guerra-Pujol, F. E. (2018). The legal environment of business: A managerial      approach: Theory to practice. New York, NY: McGraw-Hill Education.