This is a solution of Business Legal Requirements that describes about Developing business

Business Legal Requirements


When choosing a startup, there are several considerations to weigh in order to determine the legality of the business and its continuity. Many ideas seem viable on paper but without proper advice they just remain blueprints. It is therefore wise to consult on the basic requirements to enable conflict with the law as well as make profit which is the essence of getting in business.

A Coffee Shop

There are several advantages in the US economy for a coffee shop business. According to the Forbes magazine (2014) the main benefits include:

  • US is a stable pro business country having clear vision and focus
  • The US has a high GDP per capita income meaning the populace have purchasing power
  • The country’s nominal GDP continues to grow despite the economic crunch felt a few years ago
  • With the economic business and political stability, the US remains a good investment destination
  • There is social and cultural diversity which is a favorable ingredient for business.

The entire above factors make doing business attractive for any investor. However, there are legal factors that every investor must consider before venturing in a startup. These range from the type of business formation, legal requirements such as licensing, the place or location of the business, pricing of products and labor laws among others.

Legal Advice

Legal advice is of utmost importance before venturing in business because an attorney or lawyer is presumed to be well versed with the legal framework in the potential area of business. However, it is important to check out for a qualified and licensed legal adviser who will assist in matters relating to business formation, brand development and protection, property and equipment leases or purchases and business operation framework (Buchanan, 1983).

While it would be ideal to have one attorney deal with all matters in your business, there are likely to be limitations to that because they have specializations. An example is a property lawyer who will specialize on property law would be ideal to handle lease arrangements but would not have expertise in intellectual property matters. Therefore, it means you could be required to engage more than one attorney. Visit Now : BTEC HND in Business Assignment

Before opening the doors it is therefore important to carefully consider the following:

Zoning Laws

It is important to check on the local zoning regulations if you choose to build, lease or refit a previously operating coffee house. There are several business decisions such as purchasing or leasing of property as well as improving existing property that are impacted by zoning laws. Consequently, it is important to understand zoning laws before putting a penny in the investment.

Zoning plans can easily be obtained from the local planning agency which can be searched from the internet by using community name or state coupled with “planning” for better search results. Nevertheless, when a local attorney is engaged, the search becomes easy as well as getting a better insight on the zoning laws.

Commercial Lease

Starting a business and growing it can be challenging but without a lease agreement which ensures the tenure of your business, all the efforts can be worthless.  The process should start with due diligence on the property in order to validate the ownership of the property as well as its specified use in the planning licenses.

When setting the terms of the lease, the rent to be paid and duration of the lease top the agenda. However, the trick in the negotiations is not to over commit but have flexibility for long-term plans. As a startup, it is important to start with a term of one or two years but have the option to renew the lease. In this regard, the expenses associated with the lease such as maintenance, utilities and rent increases should be cautiously observed to avoid unnecessary or unexpected expenses.

The bottom line in securing a favorable lease is having a property lawyer and reading the lease in details while at the same time asking all questions that you think can affect your tenancy.

Business Legal Structure

The kind of legal structure is as important as the business itself.  While a coffee shop business decision may not seem complicated, it can have different forms of legal business structures. As a proprietor, the simplest idea that comes to the mind is sole proprietorship. This form of business may look simple to operate but there are challenges associated with raising capital where there are no enough funds.  In order to have an open platform that creates an opportunity to tap into more capital and at the same time protect your personal assets from business liability, the choice lies in forming a Limited Liability Company (LLC) (Winston, 2010).

LLCs normally referred to as companies have different formations that are meant to serve diverse business requirements.  Nevertheless, it is important to choose a corporation type that best suits a startup and at the same time have the capacity to operate like any other company.   Considering that there can be unforeseeable business future which may be negative, a LLC takes business liability form personal liability. In addition to limited liability, there is also the prospect of bringing in other shareholders to boost on the capital requirements.

Business Licenses / Property Rights

A coffee house like any other restaurant will require a food service establishment license, food safety permit and business license among others. Business and health permits may vary from a location to another and it is important to check out with the US Small Business Administration. It is also important to note that health codes differ from one area to another in the safe handling, storage and preparation of food (ISO, 2015). Planning ahead of opening time is important in order to ensure licenses and permits do not hold you from opening the coffee house.

The name you choose and work on as your brand is what gets the permit and not your name. According to Current Business and Legal Environment (2012), it is important to have the name properly registered and acquire any property rights over such brands. Where trademarks are created, it is vital to have them properly registered and licensed.


A coffee house is constantly left open on many fronts in terms of vulnerabilities such as fire, injury, lawsuits and medical expenses. In order to avoid such liabilities, it is mandatory to have liability insurance, property insurance as well as workman’s injury benefit cover. In addition, if the coffee house serves any form of liquor there is also the liquor liability insurance which exonerates you from wrongdoings resulting in alcohol consumption.

There is also life insurance which is vital for the proprietor and the workers as well. Considering the competitiveness nature of skilled workforce today, the incentive of life insurance in addition to work benefit insurance makes the skilled workers stay on the job.

Business ethics

In order to manage a robust business morally and ethically, business people can implement several philosophical theories and approaches.  Nonetheless, no theory is a cure to all workplaces but each business can follow what works out best for it. In this regard, it is important to have clearly documented ethical policies reinforced by a work business environment that facilitates moral courage. No moral dilemma should be an excuse for a manager because all such dilemmas have solutions.

A coffee house ought to have good organization in terms of hiring, the environment and the production process. While at business ethics, issues of workplace safety also arise. Safety is an important ingredient in any workplace and it is imperative that the coffee house meets the set workplace standards within its jurisdiction.


Starting a coffee house or any other business requires extensive research, preparation, startup capital, business skills and patience. In order to have success, it is crucial to ensure that the business fulfills all the legal requirements and regulatory considerations in all its phases of operation.

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