LLC Formation Lawyer Virginia
Before you commit to any particular legal structure for your new business, make sure to consult with an experienced LLC formation lawyer Virginia business owners trust. Choosing the business structure that best suits your business model and your vision for your company is critically important. This decision will impact everything from the ways in which your company is taxed to your management structure. If you don’t choose a legal structure for your company that suits your model and vision, you will incur costs and stresses that could otherwise easily be avoided.
There are four primary legal structures to choose from, although there are some hybrid and nuanced variations of some of these options that may be worth exploring with the assistance of a business formation lawyer Virginia business owners seek out for guidance and counsel. These primary legal structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each of these structures has potential benefits and drawbacks, and each is suited well for certain business models. It is therefore important to weigh the pros and cons of each model carefully when beginning the business formation process.
What Are the Benefits and Drawbacks of Forming an LLC?
Unless your business has a very specific model, needs, and vision, chances are significant that you’ll choose to form your company as either a partnership or as a limited liability company. Sole proprietorships work best when a single individual is running a solo operation and wants to handle all managerial and financial responsibilities tied to their small business. By contrast, corporations are formed primarily by business owners interested in broad expansion and the ability to issue shares in their companies.
Limited liability companies may be owned by either a single individual or by many individuals. The owners of an LLC are referred to as members. If you’re a business owner interested in a sole proprietorship model but you’d also like to benefit from limited personal liability, an LLC is a way to go. In the event that a business suffers losses, issued, or owes fines, owners of sole proprietorships may have their personal assets seized to pay for the company’s losses. This is because sole proprietorships benefit from limited reporting requirements and a flexible management structure but are not afforded any personal liability protection as a result of their company ownership.
If you’re planning to own your business with at least one other person, the same benefits that an LLC affords a solo business owner who forms an LLC vs. a sole proprietorship will be extended to your operation. Partnerships have flexible management structures and limited reporting requirements but their owners aren’t protected from personal liability in the ways that LLC members are. As an added bonus, LLCs can be taxed personally or at a corporate level. The main disadvantages of forming an LLC are that its management structure is somewhat inflexible and there are more reporting requirements tied to this business structure than there are for sole proprietorships and partnerships.
Legal Assistance Is Available
Please contact the experienced legal team at Dale Jensen, PLC today to learn more about your business formation options. Our firm’s experienced Virginia LLC formation lawyer will be happy to discuss your options with you and to provide you with personalized guidance after learning about your unique business model and vision for your company.