Law for Entrepreneurs: Legal Implications of New Business

Law for Entrepreneurs
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Introduction
Establishing a café in the city center will be an opportunity for Rosie and Viktoria to take the next step after a successful business of baking chocolate muffins. While the café business is exciting for both, they should be careful with the legal implications of their new business. This analysis will provide legal guidance to Rosie and Viktoria on the following aspects: Business structure, tax liabilities, staffing, premises lease, premises renovation, insurance needs, permits, public space utilization, and discreet funding.
Business Structure
Rosie and Viktoria need to identify the most suitable business structure and name. As partners, Rosie and Viktoria have three forms of partnerships to choose from. These are General partnerships, Limited partnerships (LPs), and Limited liability partnerships (LLPs). The most suitable business structure for Rosie and Viktoria is LLPs because of the following benefits. Firstly, the structure will provide the partners with limited liability protection. The personal assets of Rosie and Viktoria are protected from business debts and liabilities. Secondly, the LLP structure will allow the partners flexibility where they can accommodate more partners and their respective contributions, should they decide to bring more people on board later. Lastly, the LLP structure will offer more tax efficiency. Siems (2009) indicates that in the UK, LLPs are treated as partnerships for tax purposes, which allows them to avoid the complexity of taxation associated with LLCs.[Siems, Mathias M. "Regulatory competition in partnership law." International & Comparative Law Quarterly 58, no. 4 (2009): 767-802.]
Under LLPs, Rosie and Viktoria need to choose a suitable name for the business. The name should not include “‘limited’, ‘Ltd’, ‘limited liability partnership, ‘LLP’, ‘public limited company’ or ‘plc’.” The name cannot be offensive or be the same as an existing trademark. In case Rosie and Viktoria need to stop other people from trading under their business name, according to Gov.UK (2017) they need to register the name as a trademark.