A business lawyer in Wytheville, VA can help new business owners, make several key decisions when forming a business. One of the most crucial of these decisions, will be the act of choosing the type of structure for your business. Choosing the right business structure for your business is important. The type of structure a business owner chooses will affect legal liability, taxes and control over your business. When faced with so many decisions, it’s may be in your best interest to consult with The Law Offices of Mark T. Hurt, a Wytheville, VA business lawyer to determine the most suitable type of business structure for your company.
Types of Business Structures
It’s important to know the type of structures available, and to have a clear understanding of how each business structure may benefit you. There are four primary types of business structures you may choose from:
- Sole Proprietorships
- Limited Liability Companies
There are both benefits and disadvantages to each type of business structure. Before you solidify your decision, it’s important to consider the following factors with guidance from a business lawyer in Wytheville, VA:
Legal liability is one of the biggest factors to consider when choosing a business structure. No matter the type of business you have, you need to think about the potential for lawsuits. Lawsuits are a common occurance faced by many companies in nearly every industry. It’s important for you to weigh the risk when considering liability with a Wytheville, VA business lawyer. It’s important to consider legal liability when making decisions regarding the structure of your business:
- A sole proprietorship often does not separate you from your business. Meaning, if someone files a claim against you, personal assets may settle debts.
- Choosing a partnership may hold both you and your partner legally liable. This means that creditors can go after you, your partner or both of you.
- Corporations are separate entities. However, each shareholder is liable for his or her part of the investment.
- Typically, limited liability companies do not use personal assets to settle debts.
A business lawyer from Wytheville, VA can discuss with Virginia business owners their legal liability preferences to help determine the most appropriate business structure.
How much control do you want over your business? Business lawyers in Wytheville, VA can work closely with you to assess the level of control you would like to retain when forming your business. If you want full control, than you may stray away from corporations. However, if you do not mind sharing control, then any option other than a sole proprietorship is best.
- Sole proprietorships are completely under one person’s control.
- Partnerships are under the control of two or more people.
- A corporation has shareholders that control the company’s interests.
- A limited liability corporation may be under the control of one or more members. When one member forms an LLC, they will likely have the decision making power. When an LLC is owned by a group, each member may have varying levels of decision making authority.
Working with a business lawyer in Wytheville, VA can help you to make well informed decisions when structuring your business. How you want to structure your business will come down to several factors. It’s best to discuss all of your options with the Law Offices of David T. Hurt. If you are considering how to choose an appropriate business structure for your business, contact a Wytheville, VA business lawyer for more information.