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CASE STUDY
STARTING AND NAMING A BUSINESS
Shania Jackson is a mature Christian thinking of opening a Christian coffeehouse near Denver, Colorado. Her husband, Marvin, is open to making a contribution of capital to the business, but he has no interest in participating in its operation or management.
Shania’s sister, Kelsey, is a new Christian who has told Shania that she’s been looking for an excuse to get out of the house and would love to be a part of the business. Kelsey’s husband, a non-Christian, opposes his wife’s involvement and has told her that he expects her to remain a stay-at-home mom to their 2 children, ages 13 and 15.
Shania’s neighbor, Carlos, is a non-Christian who has also expressed an interest in participating in the business as a way to earn extra income. Carlos thinks the “Christian thing” has potential with all the big churches in the area, including a Mormon temple and a large Kingdom Hall of Jehovah’s Witnesses.
In researching the coffee business, Shania comes across a few franchise opportunities, some of which would require her to adopt the franchise name and trade dress, as well as others that would only require her to move into a turn-key facility and agree to purchase a certain volume of product every month for a period of at least 10 years. Both types of franchises offer training for her and any staff she might hire.
Shania has considered organizing her business as a sole proprietorship, a partnership of some sort, a corporation of some sort, an LLC, or even a joint venture. She is thinking of calling the business “The Gathering Place.”

Topic: Starting and Naming a Business
Research and analyze the following questions
1. Advise Shania on which of the business forms under consideration best accomplishes her business goals. Thoroughly explain the reasons for your recommendation.
2. Advise Shania on whether her company should become a franchise or should open as an independent coffeehouse. Explain your recommendation.
3. Perform a corporate name search at Business Entity Criteria website to determine if the name Shania is considering is available for use in the State of Colorado. Also assess whether the name is available as a trademark. Even if the name is available, advise Shania on whether it is a good choice. Explain why or why not.
4. Advise Shania on which of the interested persons she should include in her business, why, and in what role(s). If she chooses not to take in a particular party, what reasoning should she give each person, if any? Your analysis must include biblical perspectives, such as biblical considerations of marriage and of business relationships with non-believers.

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Best form of organization:
There are various forms of business each catering to some specific combination of ownership and liabilities and tax treatment. Sole proprietorship is the most common form of business organization and there is no legal requirement as to profit sharing and operational duties are concerned. But since Shania’s husband is making a contribution of capital, there should be at least two people in the business and hence one can look to some form of partnership. If Shania looks for becoming an LLC (Limited Liability Corporation) which combines the form of partnership of two or more persons and a corporation that allows for certain liability protections, it is much suitable for larger businesses and not for the one that Shania wishes to start(Cooper et al., 2016, pp.92).
The best suitable form of business organization would be that of Limited Liability Partnership as it provides tax benefits to the partners. Here the profits and the losses are passed through the partners’ individual tax returns...

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