BUSINESS & CONTRACTS

Hiring an experienced business attorney to advise you as to entity formation and contract negotiation helps you avoid legal pitfalls which may be costly or fatal to your business. A business attorney guides you with your particular industry situation to achieve your professional goals and grow your enterprise.  

What is a business entity and why do I need it?

Small business owners need to protect their professional and personal assets while growing their enterprise. A business entity (LLC or S Corporation) helps business owners achieve their goals.  Which entity is right for you?  If you choose an LLC, will it be single member or multiple member? An experienced business attorney will help you determine how best to proceed.

 

Should I hire an attorney to start my business or handle my business’ legal affairs?

Hiring an experienced business attorney to advise you at the creation of your business and as your enterprise grows helps you avoid legal pitfalls which may be costly or fatal to your business.  In addition to advising which legal structure is most beneficial to your business and your particular circumstances, a business attorney will prepare and negotiate contracts with your sole interest in mind.

 

How do Limited Liability Companies sign legal documents?

Actually, LLC’s do not sign any documents.  Rather, the managing member of the LLC signs documents on behalf of the entity and with its consent and ratification via corporate documents.  Contracts may only be signed by living persons, not business entities.

Are you starting a new business? Congratulations!

Which entity is right for You?

 

A.Sole Proprietorship

Advantages:

•      Simplest form of organization

•      You, as an individual, establish the business under your own name or a trade         name.

•      Little paperwork or planning is required.

•      Taxes are reported on your personal tax returns (Schedule C).

•      Profits (and losses) come directly to you.

•      You make all decisions.

Disadvantages:

•      Riskiest form of organization.

•      Unlimited personal liability.

•      All personal and business accounts and assets (including your home) are at           risk.

•      Creditors and claimants (in this litigious society) may easily access your                   assets to satisfy judgments.

 

B.Partnership

Generally, 2 or more persons who form a business.

Some Types of Partnerships: 

  • General Partnership

  • Limited Partnership

  • Limited Liability Partnership

  • Family Limited Partnership 

 

C.‘S’ Corp

  • Corporate tax return is filed.

  • Profits are taxed once in members’ personal returns.

  • 75 or fewer shareholders.

  • Limits on income, non-citizen shareholder, stock variations.

 

D.Limited Liability Company (LLC)

  • Similar to Partnership.

  • No separate entity tax return is required.

  • Profits are taxed once in members’ personal returns.

  • Creditors may not reach members’ personal assets.

  • Limited Liability for members.

  • Easy to organize; simple tax structure.

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