Whether you are an emerging entrepreneur or a Fortune 500 executive, building and maintaining a successful business involves securing capital. This is typically done by issuing stock or borrowing from lenders, screening employees, including managers, and choosing a corporate address.
You will determine the best operating vehicle for your enterprise, manage people, negotiate contracts, build a brand, and market a product or service. Someday, you will also plan your exit strategy. Share the responsibility by allocating your legal needs to a Dominion business lawyer at Begum Peláez-Prada PLLC.
Businesses must choose a name and operating entity and register with the Secretary of State. This involves filing as a corporation, partnership, or limited liability company. Sole proprietorships have minimal regulatory requirements.
If your business pays wages, you will need a federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You will also need to consider sales tax, permits, zoning, and other business taxes. A Dominion business attorney could advise you about the benefits of each entity and help with the necessary documents to establish them.
Starting a business involves choosing the right structure, whether that be a partnership, limited liability company (LLC), or corporation.
Forming a partnership allows you to benefit from pass-through taxation, in which profits and liabilities are passed to the owners, avoiding double taxation. The downside is that partners are generally responsible for the company’s debts.
Owners of LLCs are called members. They receive a percentage of the business commensurate with their startup contributions, including cash, real estate, expertise, and intellectual property. When no LLC operating agreement is adopted, ownership percentage is presumed equal, so it is advisable to have an agreement drafted by a legal professional. LLCs also feature a pass-through tax structure, and limited members are shielded from the company’s liabilities up to the amount of their contributions.
Corporations are owned by shareholders who are not liable for the company’s debts. They are the only entities that can trade on the national stock exchanges and can raise money through debt or equity.
A Dominion lawyer could help you choose the best option for your business.
Our managing partner, Sasha Begum, is an award-winning attorney with almost 20 years of experience supporting business owners worldwide. She and her team at Begum Peláez-Prada PLLC could support you by:
Our mission is to support you at every stage of your business. If you have questions, a business lawyer at our firm in Dominion could provide the answers.
Whether you are contemplating your next move, starting a business, or looking for the best exit strategy as you reach retirement, every step of your professional journey should be supported by a competent law firm that understands your vision.
A seasoned Dominion business lawyer at Begum Peláez-Prada PLLC could support you every step of the way and guide you on what is best for you and your business. Call today to learn how we can support you.
