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Business Legal Issues

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In any kind of business engagement, the legal structure plays a very significant role in determining its success. This is more typical of the restaurant business outlet in this context. The legal structure of the restaurant business is of utmost importance, as far as it touches on various aspects (Starting a Business 1-5). What concerns a sole proprietorship restaurant, the legal structure would be different from that case, when the business is a large corporation or a partnership. Each legal structure has its own advantages and disadvantages. Therefore, it is a very prudent idea for a business to develop a plan for that kind of the legal structure, which serves the aims and objectives of getting engaged in this business. There are the following aspects of a legal structure: capital, business continuity, liability, management control, regulations of the government and taxes imposed on income. The realization of them is an important step to an actionable choice of the structure appropriate for the business. It is always advisable to consult an attorney before making this decision.

This business engagement has a sole-proprietorship structure. It involves the investment of a small amount of capital. Being an owner, an individual retains full control and management of every decision that is to be made. It will not be a wise idea for this restaurant business to get engaged in large legal structures, such as a partnership with large corporations. This is because the vision and mission of the business outlet may die out and end up without gaining profit.

The power to raise the initial capital in this or that kind of business is limited entirely both by the resources of finance and the creditworthiness of the owner of business. It is good for the owner to be ultimately liable for every action and business debts. Taking full responsibility helps to solve the issues at hand soberly. Involving many partners can make some people shy away from these liabilities and, as a result, cease all business operations. These definitions and clarifications are important as they affect the ultimate outlook of the legal structure of the restaurant business.

That’s why, this restaurant business is to be recognized by the federal government by means of registration, notwithstanding the size of the operation. This ensures that the business runs without interruptions on the part of the central government (Starting a Business 1-5). Customers need a reliable supply source for their needs and supplies. When the business is closed down because of a lack of the required legal documents, customers may find other places to get their goods. This has a very big impact on the success of business. Many customers may look at the business as being unreliable to offer what they want.

Therefore, it is imperative that plans are to be made to get a legal license that guarantees business operation. Permits and licenses are grants given by the federal or local government to people, partnerships or corporations to carry out specific activities. It involves payment of a non-refundable fee being a proof of certification on the basis of examination. Therefore, a person is required to carry out research into applicable local and state laws. Thus, the establishment of the restaurant business requires the use of legal professional services. The use of legal professional services is very important for the restaurant business to kick start without experiencing any challenges. It is also of great importance to make use of these services as they give the business a go ahead and again will be required at times when the business expands its operations (Starting a Restaurant 3-6).

Seeking the intervention of a professional lawyer can provide expertise and knowledge in the areas that could be limited to the business owner. The professional lawyer can round out operation procedures for the business to operate in the most efficient manner. Thus, it is important to consult the lawyer in order to start up the business. Lawyers are professionals that are highly trained dealing with a wide scope of business and personal legal matters. The company should deal with a lawyer specializing in business matters and this will guarantee an effective service and a right advice for the business. Most transactions in business have legal implications. Therefore, it is important to contact a lawyer who can be treated as a trusted and a dependable business advisor.

When looking for a lawyer, it is important to consult friends, family and business associates for references of law firms that can be used as credible sources. There have been a lot of fraudulent activities during the registration of business. Therefore, this process ought to be very carefully thought out. Prior to meeting the lawyer, it is important to be prepared with the explanations concerning specific legal requirements for the business and to enquire the cost of these services. It is also advisable to contact several sources to ascertain these courts (Starting a Business 1-5).

After selecting the structure of the business and performing necessary instructions for the registration process, the services of a professional accountant are also needed. Consultations of professional accountants also meet legal requirements. Their advice is important for matters concerning tax implications of the chosen restaurant business structure. It is important for the restaurant business to be tax compliant. Any operations that do not meet the legal tax implications are under a threat of closure and fine imposed on the top of that.

Another factor meeting legal requirements would be based on whether the premises will be leased or not. The business, which uses leased premises rather than own buildings, is to go through a legal process. Leases constitute one of the biggest expenses and normally represent a lasting commitment. As such, the signed lease agreement is a very significant legal requirement. Leases can be different depending on their content. They can be a mere one-page agreement or a long complex document. This is normally determined by the space that is going to be leased. The realtor assists in comprehending the basic terms and the cost of a lease. However, it is advisable to consult a lawyer to describe the legal implications prior to signing the document (Starting a Restaurant 3-6).

If the initial establishment of the restaurant business would require buying of an existing business, legal procedures are to be followed. In case there is an acquisition of assets of an existing company, the transactions taking place are to be certified as a part of the legal requirement. It is required by the law to sign a buy/sell agreement by the parties involved in the transaction. Consulting an accountant at this level is also very important when purchasing assets conversant with various tax implications.

In case the restaurant business takes over the operations of existing hotel premises, it is important for an entrepreneur to be protected from the breach of law or contract. Following the advice of a competent lawyer, valid contracts are to be reviewed after the buy-in need. This is be very important in order to save the business from future losses in case there is a lack of any of these caused by the legal authority of the town.

A restaurant is a very sensitive area of operation that requires careful procedures and processes used before the onset of operations. Therefore, it is required by the law to comply with the occupational, health and safety policy concerning the welfare of employees and even to ensure the health safety of esteemed customers. Workers must be provided with the correct personal protective equipment required by the law. Hygiene is a very important aspect and, thus, the restaurant business must meet minimum legal requirements. Generally, the occupational health and safety committee should be involved both in running business operations and meeting legal requirements (Starting a Restaurant 1-6).

For the hotel and hospitality industry, it is a legal requirement for any hired employee to go through a medical examination. The medical examination must be conducted by a recognized health institution. They are normally carried out at least once in a given time period predetermined by legal requirements of the government. All employees should also been trained health and safety measures. Health measures are very important for running the restaurant business and, therefore, must be taken very seriously. It is one of the significant legal requirements, without which the business cannot operate.

The running of a restaurant business often involves a lot of physical risks and hazards. The requirements of the law advocate for measures to be taken as precautionary steps to counteract the onset of any hazard within premises. There could be accidental fires and, thus, the management should install fire fighting equipment where necessary. Finally, the management should have a proper environmental management system. This will call for the establishment of proper waste disposal and the treatment of any effluent material from the business (Sullivan 35-62). The law requires the environment to be protected and the breach of this would interfere with normal business procedures. 

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