From sole proprietors to corporate empires, a lot goes into maintaining a business, and this is especially true when conflict arises. Whether you are a business owner or an entrepreneur, you could benefit from working with a dedicated business attorney.
From selecting the right organization structure to resolving conflicts, a Woodlawn Hills business lawyer could support your company long before it opens for business.
One of the most important decisions you will make as an entrepreneur is selecting what type of entity to form. You make this choice when you register your company with the state, and the regulatory requirements vary dramatically based on the specific type of company. A Woodlawn Hills lawyer could help you select the appropriate business entity for your needs.
The simplest types of businesses to form are sole proprietorships and partnerships. Sole proprietors are businesses operated by an individual, while partnerships include two owners. There are limited requirements for creating these entities, which is useful for many people. While there are no additional tax obligations with this approach, the major downside is that the owners are personally liable for any company debts.
Limited liability companies are a popular option for small- and medium-sized entities. The owners—known as members—share a percentage of ownership, and the number of members is limited, which restricts the size of the company. However, there are notable benefits with this option, including a favorable tax structure and a personal liability shield for company debts.
Corporate entities do not have limits on size or ownership, and they can even be publicly owned. Stockholders in these companies do not face liability on a personal level, but there are downsides related to tax obligations. Income is taxed at the corporate level, and stockholders are individually taxed again on their income.
A lawyer could support you beyond selecting the appropriate company structure. In the business world, conflicts can arise quickly and have significant consequences. Having the support of a Woodlawn Hills business attorney could be invaluable for avoiding or resolving these conflicts.
Even after hiring an attorney, it is rarely a good idea to move directly to litigation without first exploring other options. Lawsuits are costly and time-consuming, and they can distract business owners from their core competency. Every moment you are worrying about ongoing litigation is time you could be spending on operating your business. With that in mind, it is worth noting that many of these issues may be resolved amicably between parties.
Often, disputes can be worked out between legal counsel without the need for a lawsuit. While this is the optimal outcome in most situations, litigation is sometimes unavoidable. In such cases, it is critical to rely on an attorney to handle every stage of a civil suit.
As a business owner, it is vital that you take the steps necessary to protect your interests, and the best way to do that is to rely on the experienced guidance of legal counsel. Contact a Woodlawn Hills business lawyer from Begum Peláez-Prada PLLC as soon as possible to learn more.
