Starting a new business can be an intimidating prospect. At Michelle Tuschinski, Attorney at Law, we understand how difficult it can be to begin a new endeavor, and so we offer rock-solid, practical legal advice to ensure your business is set up properly to achieve your short and long-term goals. There are various types of businesses you can form including those listed below:
Sole Proprietorships
The simplest business entity, a sole proprietorship consists of a single owner. While it can be the easiest to form and operate, it typically does not offer the protections afforded by more sophisticated business entities.
Corporations
A corporation is a separate entity and is generally managed by a board of directors (one or more people) that elect the officers of the corporation. In Virginia, there are two different types of corporations, stock and non-stock. Stock corporations issue shares to shareholders or owners of the corporation. Non-stock corporations generally have members but do not have owners and do not issue stock.
Limited Liability Companies
A Limited Liability Company (LLC) can consist of one or more members, known as owners, that share in the profits as well as the losses of the LLC. An LLC is an entity separate from their owners, and therefore, the owners are not typically held liable for the debts of the LLC.
Partnerships
There are different types of partnerships that can be formed in Virginia, including limited partnerships, general partnerships, or registered limited liability partnerships. At Michelle Tuschinski, Attorney at Law, we can explain the different types of partnerships and determine which, if any, are best for your business formation.
Why You Should Consider Business Formation
We are often asked why a person should consider formally filing to establish a legally compliant business entity. There are various reasons, including:
Asset Protection: By forming a business, you can help avoid personal liability and therefore protect your assets.
Tax Planning Benefits: Forming a business can help minimize your overall tax burden and provide tax benefits, including the ability to deduct certain business expenses.
Separate Entity Creation: Creating a business means that you are creating an entity separate from yourself. This can simplify ownership transferability and ensure the business lasts even after you are gone.
Creates Legitimacy: Entering into contracts with others and engaging in different types of negotiations can be aided by the creation of a business, as it lends credence and credibility.
When You Are Ready to Start Your Own Business, Contact Michelle Tuschinski, Attorney at Law
Ready to take the next steps with your business enterprise? Contact Michelle Tuschinski, Attorney at Law, and find out which business entity works best for you. No matter what you decide, we have you covered.