Virginia Business Litigation Lawyer
If you’re planning to start your own business, one of the first things you have to consider is how your company will be structured. There are four main types of business structures: corporations, sole proprietorships, limited liability, and partnership. A Virginia business litigation lawyer like Dale Jensen PLC may help you decide on the best structure for your business. Here are some other tips to consider.
Before you choose a business structure, you should think about your liability. For example, a sole proprietorship might not be costly to form, but you will be personally responsible for any losses your business has. If your business had unpaid debts, creditors could take your home and other assets to recover their losses. If you want the best protection for your personal assets, a business formation lawyer Virginia residents trust may advise you to form a limited liability company or corporation.
Think of How Expensive It Will Be to Get Started
When you’re in the beginning stages of your business, you have to think about how much everything will cost, including selecting a business structure. Some business structures are more expensive to form than others. Corporations, for example, are quite expensive to start and require a lot of paperwork. Sole proprietorships, on the other hand, are relatively simple to form and require less funding upfront, making it ideal for many small business owners.
Take Your Tax Situation Into Account
How you structure your business will also affect how it will be taxed. If you want to simplify filing taxes as much as possible, a Virginia business litigation lawyer may suggest for you to form a sole proprietorship because you don’t have to separate your personal tax records from your company tax records. Corporations, however, are separate entities from their owners, so their profits are taxed at a corporate level.
Consider Your Long-Term Goals
When choosing a business structure, you should also think about where you want your business to be several years down the road. For instance, if you’re seeking fast growth, a Virginia business litigation lawyer might recommend forming a corporation, as it allows for multiple classes of stock and doesn’t restrict the number of shareholders. A corporation is ideal if you want investment from venture capitalists or you want to be a publicly-traded company.
Think About Control
Before you select a business structure, you should determine the type of control you want to have. If you, for example, want sole or primary control of the business, a Virginia business litigation lawyer may advise you choose an LLC or sole proprietorship. If you don’t want as much control, forming a corporation may be more ideal.
If you’re getting ready to structure your company, contact a Virginia business litigation lawyer today. He or she will assess the needs of your business and help you select a structure that reflects your company’s best interests.