Business Formation Lawyer Virginia

Business Formation Lawyer Virginia

What to Know About Corporate Law 

Business Formation Lawyer - Virginia

Corporate law includes a body of laws and regulations that oversee the formation of co

When you first set up shop and begin business operations, a business formation lawyer in Virginia knows that business succession is probably one of the furthest things from your mind. For most who go into business for themselves, they likely are hoping that their business will have a long and successful run, even in future generations. Whether you are planning to pass your business on to a family member, your business partner, or sell it to another party, it will be important that you put the time and effort into planning with a trusted Virginia business formation lawyer. 

Dale Jensen, PLC can assist you in meeting all of your business planning needs by providing you with:

  1. Lawyers who can help you to clearly understand the business succession planning process
  2. Lawyers who can simplify the process so that you are able to move through the process with ease
  3. Listen to all of your business succession planning needs and assist you in achieving them
  4. Present you with all of our options
  5. Assist you in getting all of your affairs in order
  6. Careful assessment of your specific situation
  7. The peace of mind you deserve

Business Succession Plans

A business succession plan is important for any business, no matter the size and even if you are just forming your business. They can plan for the unexpected and even the inevitable retirement. When businesses do not have a clear succession plan in place, they put the future of their company at risk. When planning your business succession, you will have a number of decisions to make. Drawing up a solid and clear plan is certainly something you will want the assistance of a knowledgeable VA business formation lawyer for. The following are important tips to bear in mind when business succession planning:

  1. Do not wait before it’s too late to start your business succession plan
  2. Identify who will step into key positions within the business
  3. Be clear and upfront with family and business partners regarding your plans
  4. Consider carefully who you would like to take on leadership roles within your company
  5. Communicate your succession plans to family members and take the time to listen to any concerns they may have
  6. Slowly start implementing your succession plan before retirement, to ensure a smoother process

Although it can be easy to delay this process, doing so can put your business at risk of crisis within your business. Call Dale Jensen, PLC to discuss a succession plan as early as the business formation stage so that we can guide you in the process of business succession planning. 

Planning for the future of your business is not something to be taken lightly. Although the plan may not need to be implemented for quite some time, it’s absolutely necessary that you put together a business succession plan for when the time comes. At Dale Jensen, PLC, we know that the idea of developing a business succession plan can feel overwhelming. Our services can provide you with a thoughtful, clear, and straightforward way to safeguard the future of your business. 

What To Know About Corporate Law

Corporate law includes a body of laws and regulations that oversee the formation of companies. Business entities have their own regulations to follow that dictate how they should conduct their operations. These laws include the rights of all the people who are involved in owning and operating a company. Corporate law is complex. It is therefore generally a good idea to speak with an experienced Virginia business formation lawyer before making any assumptions about your rights and/or obligations under U.S. corporate law. The experienced team at Dale Jensen, PLC is always available to provide clarity concerning corporate law matters that affect startups and/or existing business entities. 

What to Know About Corporate Law

Corporate law includes a body of laws and regulations that oversee the formation of companies. Business entities have their own regulations to follow that dictate how they should conduct their operations. These laws include the rights of all the people who are involved in owning and operating a company. Corporate law is complex. It is therefore generally a good idea to speak with an experienced Virginia business formation lawyer before making any assumptions about your rights and/or obligations under U.S. corporate law. The experienced team at Dale Jensen, PLC is always available to provide clarity concerning corporate law matters that affect startups and/or existing business entities.

Corporate Law – The Basics

The first step to understanding corporate law is to understand what a corporation is. Corporations are legal entities and are separate from their owners and shareholders. Corporations conduct business in their own names, rather than in the names of the owners. Limited liability means that the owners cannot lose more than the company during litigation. Not all companies are constructed as corporations. However, the concept of “corporate law” does extend to non-corporations as well, depending on the regulations in question. The terminology of business law is complex and confusing. Thankfully, a Virginia business formation lawyer can answer any questions you may have about this area of the law.

Generally speaking, the point of corporate law is to regulate business operations so that American companies (and foreign companies conducting business in the U.S.) operate on the same playing field. These laws are meant to help businesses. They are not generally put into place to make it more difficult for businesses to succeed. With that said, when new businesses run into regulations that make it difficult for them to get off the ground, a Virginia business formation lawyer can help them navigate the legal challenges they face.

Is Corporate Law Criminal or Civil?

Corporate law is not generally criminal law. If a company has a dispute, then they can go to a civil court to resolve it. Now, this does not mean that officials cannot face criminal charges. They are protected when it comes to business liability. This does not mean that they cannot be held accountable for fraud or other criminal acts. Corporate law exists for civil solutions.

Who Are Corporate Lawyers?

Corporate lawyers may work for large law firms or smaller firms. Normally, a corporation’s legal needs are significant. If a company has legal issues, they may need advice on a variety of topics. It’s important for there to be experts in a variety of areas of business law to best serve a business client. When launching a business, it is a good idea to work with a Virginia business formation lawyer you can trust, who has extensive experience assisting companies like yours.

Founding a Startup – Basic Considerations

If you are thinking about founding a business startup as a corporation, you’ll need to make many decisions concerning the formation of the company before you can officially found your startup. How do you figure out which kind of corporation is best for your company’s needs? When looking into legal entities, you may want to consider S-corporations or C-corporations. After reviewing this introduction on the basics of both models, consider connecting with an experienced Virginia business formation lawyer from Dale Jensen, PLC to explore your options in greater detail. Once you have all the information you need, you can make an informed decision concerning your company’s legal structure.

Basics of Each Model S-Corporation

An S-corporation may also be referred to as a subchapter S corporation. These companies are taxed on the personal returns of shareholders, not at the corporate level. This model is bound by similar compliance obligations as C-corporations are. C-corporations are standard, traditional corporations. Shareholders have stock in the company and share ownership of the business. Like the S-corporation, C-corporations have to pay fees, issue stock and hold share and director meetings.

Differences Between S and C-Corporations

When it comes to the differences between S and C corporations, there are three main categories to consider. These categories include:

  1. Taxation
  2. Formation
  3. Ownership

C-corporations use corporate tax rates, whereas S-corporations allow business profits and losses to be reported on an owner’s personal income tax returns. When it comes to business formation, C-corp is the most common and default type of corporation. It is therefore important to speak with an experienced Virginia business formation lawyer about the potential benefits and drawbacks of each approach. Would your company be best served by being an exception to the default rule? Or would a traditional model better serve your mission? A Virginia business formation lawyer can help you answer these questions.

One of the biggest differences in terms of business structure involves restricted corporate ownership. C-corporations are more flexible than S-corporations. If you want to expand your business or sell it to another business, then you might want to choose a C-corporation for its flexibility. C-corporations do not restrict business ownership. You can have as many shareholders as you want and benefit from having different classes of shareholders.

S-corporations, on the other hand can only have up to one hundred shareholders. These shareholders must be citizens or residents of the United States. C-corporations allow for foreign investors. S-corporations are also limited to one class of stock. You can only have one type of shareholder, rather than there being a hierarchy between shareholders. Ownership classifications, financing limitations, and taxations issues are arguably the most important reasons to carefully consider both models before you land on one or the other. It may help to consult with a Virginia business formation lawyer ahead of time to figure out which formation structure best suits the mission of your startup.

For more information from a Virginia business formation lawyer you can rely on from Dale Jensen, PLC, please contact us now.