Question

Assume you will start a new restaurant and rent space for your business in a strip mall or 3-story office building in Fairfax County, Virginia. Pick a name for your business consistent with your business form. You would like to start a Limited Liability Company (LLC). Assume you will be an owner and an employee of your business. Explain the following:

* What level of liability exposure does your business form create?   

* How many employees will you have and what will your employeee do?

* Explain one Federal statute that we covered in class that your business must follow and why.

  

Answer 1

Let’s take a name for restaurant “ Payas Food center LLP”

Limited Liability Partnership (LLP) is a legal entity and can be created with minimum 2 partners but no limit on maximum number of partners. There is no requirement of minimum capital contribution from partners in LLP but each partners liability is limited to his share which has been written in agreement at the time of filing the agreement for LLP. Limited liability as the name indicated that the partners will not have any liability on other partners act, every partners liability is limited to his own acts only.

Every restaurant’s organization structure is based on the services they providing. Like there may be a restaurant where one has to do self service or there may be restaurants where one will be served on his table only. Let’s say we have self service restaurant name “ Payas food Center”

Based on services we need following employees for the organization:

1. Bookkeeper: who has to report all financial issue to owner and along with keeping the recird of all the accounting and financial transaction , profit and loss etc. The prime duty of bookkeppr is to state and ensure the financial health of the organization is good.
2. General manager: To monitor and guide the other employees under him, like assistant manager,
3. Assistant manager: Managing inventories, raw material processing supervision etc.
4. Kitchen manager: Who hires chefs and other kitchen staff.
5. Team leaders: who manages and control his team members and guide them if needed.
6. Team member: who will be assigned different task as per their expertise.
7. Kitchen staff: They are foundation of the organization
8. Other staff