business law: Luke and Lauren computer dating business

Business Law Name: Course: Professor Name: (November 19, 2011) Business Law Luke and Lauren are well fit to start their computer dating business because they have the finances meaning that they will not have to keep a record of liabilities since Luke is contributing by giving out his computer, while Lauren is contributing to the capital in terms of cash. The biggest disadvantage in their business is that full liability for either of their actions falls totally on both of them and this can cause serious problems, especially in situations where they have poor management capabilities but they are the ones making management decisions. It is important that forms of formality be filled, signed by both of them and filed so that it serves as a regulatory tool in case there arises any disputes. In addition, Luke and Lauren should discuss in details about the purpose of their computer dating business, life of the business or rather its duration so that it is clear to them whether the business is long term or short term and how to handle termination. They should also decide on how to address management decisions and who should manage it. It is also important that they have liquidity in their business or device ways of having some cash available for periods of uncertainty or in cases when there is surplus cash outlay. Luke and Lauren should not fail to pay their income taxes at local levels, state or the federal since income is subject to single taxation, (Biebl, 1989). Dan and Steve should be careful not to rush into opening other dry cleaning businesses before they are sure enough that they are able to generate proper income enough to recover the money they are planning to borrow in case they are taking a loan. However, if their source of capital for starting their new businesses is donations from friends and relatives and gifts from well wishers, this is a go-ahead for them because they will have enough finances and will not be liable to anyone. They have already decided among themselves that they will all be managers of both businesses, though conflicts can arise on how business operates if there are no formal accords as to an allocated management ladder. Therefore, Dan and Steve should formalize their two businesses and keep records of written agreement between them in case of future conflicts. They should also make it clear with themselves whether they are starting a short term or long term business because it is important to know how long a business exists and for formality know how to deal with its termination in case it occurs. Paying of taxes is not an exception for Dan and Steve even if they have another business in existence, (Bost, 1991). Jenny`s idea of opening a day care centre is perfect since she has the finances start off, though it is very worthwhile that she takes a liability insurance because $50,000 which is the value of her premiums yearly is a very small fraction of the money she has at hand; considering that she will also make profits after the day care is fully established. Jenny does not to deal with a second party since she is not employing anyone and this will save her on liabilities because in case of any, she will be pretty sure she is covering for her own debts. Jenn...