Business Lawyers Abingdon, VA
The legal structure of a small business affects everything from the taxes that business will be required to pay to the liabilities its owners may face if the business goes into debt or is sued. It is therefore critically important to understand your options before you commit to a specific legal structure as you become a small business owner. Experienced Abingdon, Virginia business lawyers can explore all of your options for you in detail. It is important to seek legal guidance as it pertains to your unique situation. As you prepare for a consultation with an Abingdon, VA business lawyer at The Law Offices of Mark T. Hurt, consider looking through this basic outline of your four major options and bring any questions you may have about the material to your risk-free first meeting with the legal team at our firm.
LLCs vs. Partnerships
There are four primary legal structures that aspiring small business owners can choose from when establishing their companies. These options are: sole proprietorships, partnerships, limited liability companies, and corporations. Most small business owners avoid the corporation option, as corporations are heavily regulated and beholden to stockholders. Sole proprietorships are only appropriate for business owners who plan to manage the business entirely on their own. As a result, most small business owners gravitate towards the other two options: partnerships and limited liability companies.
There are a few important distinctions to be made between partnerships and LLCs. The most significant of these differences involve personal liability of the business owners themselves. A partnership features a flexible management style, which many business owners find appealing. However, the major drawback to creating a partnership is that none of the partnership’s owners are protected from personal liability in the event that the business goes into debt or is sued. This means that if your business incurs expenses it cannot meet, creditors can come after your personal assets. This reality stands in stark contrast to the establishment of an LLC. All of the owners (called members) of an LLC receive significant personal asset protection from business creditors when they establish their companies under this legal structure. There are some good reasons to consider forming a partnership instead of an LLC, but the issue of personal liability must be carefully considered when you meet with experienced Abingdon, VA business lawyers.
Legal Guidance Is Available
If you are thinking about becoming a small business owner, it is important to have all the information relevant to your situation before you commit to a specific business structure. Experienced Abingdon, VA business lawyers can both provide you with that information and with guidance and support as you establish your business. Meeting with our legal team does not obligate you to take any specific action. A risk-free consultation simply ensures that you can obtain answers to your questions about the legal needs of your new business. Please don’t hesitate to connect with experienced Abingdon, VA business lawyers today. We look forward to speaking with you.