Contracts
For our business, Karma Kaffeine, we will need to implement several contracts. For instance, we will be required to form a lease contract when we decide to rent out property for our business. The leasehold interest we will engage in is Periodic Tenancy, which is the automatic renewal of the contract for another rental period unless formally and properly terminated (Holcomb, 2015). Our business has chosen to rent property because it will save us money if we are required to change locations due to unforeseen circumstances. In addition to forming a lease contract, we will need to form contracts with our suppliers and distributors to ensure our products will be delivered promptly. We will need our cups customized with our company’s logo on it, our coffee, and our pastries and other bakery items to be delivered to us by our suppliers. Along with needing these two contracts, Karma Kaffeine will hire and form a contract with a general contractor. Although hiring a general contractor seems like an excess expense, our business will save money in the long run if we hire one (Gentile, 2014). Because we are not plumbing or architectural experts, a general contractor will fix any structural or plumbing issues our business faces. Lastly, for contracts relating the running of our business, we will need to contract with a contract roaster. For starting up our business, we will need to hire a contract roaster to roast and package our coffee. As a coffee shop that is starting up, we will need assistance in getting ready-to-serve coffee because we will be unfamiliar with the process (Editors, 2015). However, our business will also possess our own coffee roasting equipment in case of a misunderstanding or miscommunication between us and the coffee roaster we contract with (Lanzkron-Tamarazo, 2014). In addition to contracts regarding the success of the business itself, we will need to hire legal personnel to oversee decisions we make. First, we will need to hire and form a contract with a lawyer. The lawyer our business hires will be needed to read over contracts and lease agreements we form before we sign them. Along with a lawyer, Karma Kaffeine will hire an accountant/bookkeeper to keep close track of all financial information and matters. Contracts for a lawyer and an accountant/bookkeeper will be the only employment contracts necessary. Individual team members will not need to sign contracts, due to the easy nature of hiring additional employees in the event of an employee quitting or getting fired. When forming our contracts, our company has a simple philosophy we follow. Karma Kaffeine wants to make smart decisions when …show more content…
LLP’s have many advantages that will work for our company’s benefit. For example, all partners have equal management rights and limited liability. Because LLP’s are a legal entity apart from their owners, partners are not personally liable for the business. LLP’s also have flow-through taxation and exist until they are cancelled or revoked. Our business will survive, even after the owners’ death, and this is a huge advantage, granted our business is successful. We have chosen to form our business as a Limited Liability Partnership primarily because of its equal right to management, limited liability, and the fact that it will exist until we cancel or revoke it. When choosing which business structure would best fit our company, we looked at six
For our business, Karma Kaffeine, we will need to implement several contracts. For instance, we will be required to form a lease contract when we decide to rent out property for our business. The leasehold interest we will engage in is Periodic Tenancy, which is the automatic renewal of the contract for another rental period unless formally and properly terminated (Holcomb, 2015). Our business has chosen to rent property because it will save us money if we are required to change locations due to unforeseen circumstances. In addition to forming a lease contract, we will need to form contracts with our suppliers and distributors to ensure our products will be delivered promptly. We will need our cups customized with our company’s logo on it, our coffee, and our pastries and other bakery items to be delivered to us by our suppliers. Along with needing these two contracts, Karma Kaffeine will hire and form a contract with a general contractor. Although hiring a general contractor seems like an excess expense, our business will save money in the long run if we hire one (Gentile, 2014). Because we are not plumbing or architectural experts, a general contractor will fix any structural or plumbing issues our business faces. Lastly, for contracts relating the running of our business, we will need to contract with a contract roaster. For starting up our business, we will need to hire a contract roaster to roast and package our coffee. As a coffee shop that is starting up, we will need assistance in getting ready-to-serve coffee because we will be unfamiliar with the process (Editors, 2015). However, our business will also possess our own coffee roasting equipment in case of a misunderstanding or miscommunication between us and the coffee roaster we contract with (Lanzkron-Tamarazo, 2014). In addition to contracts regarding the success of the business itself, we will need to hire legal personnel to oversee decisions we make. First, we will need to hire and form a contract with a lawyer. The lawyer our business hires will be needed to read over contracts and lease agreements we form before we sign them. Along with a lawyer, Karma Kaffeine will hire an accountant/bookkeeper to keep close track of all financial information and matters. Contracts for a lawyer and an accountant/bookkeeper will be the only employment contracts necessary. Individual team members will not need to sign contracts, due to the easy nature of hiring additional employees in the event of an employee quitting or getting fired. When forming our contracts, our company has a simple philosophy we follow. Karma Kaffeine wants to make smart decisions when …show more content…
LLP’s have many advantages that will work for our company’s benefit. For example, all partners have equal management rights and limited liability. Because LLP’s are a legal entity apart from their owners, partners are not personally liable for the business. LLP’s also have flow-through taxation and exist until they are cancelled or revoked. Our business will survive, even after the owners’ death, and this is a huge advantage, granted our business is successful. We have chosen to form our business as a Limited Liability Partnership primarily because of its equal right to management, limited liability, and the fact that it will exist until we cancel or revoke it. When choosing which business structure would best fit our company, we looked at six