Northern Virginia Business Formation
It started with an idea, and now you have a plan. You are ready to start a new business, but you want to make sure that you do everything correctly. You know you have to comply with local, state, and federal laws and take steps to protect your personal assets from business debts and liabilities. At the same time, you need to choose a business structure that supports your business plan to grow your company and increase revenue through the years.
PJI Law has extensive experience in business formations for Northern Virginia residents. We will guide you through the process, from selecting a business structure to filing the paperwork. Contact us today to take the first step in forming your business.
Business Structures In North Virginia
PJI Law helps clients form various business structures. We can also help you decide which structure is best for your new endeavor. Options include:
Understanding S-corps and C-corps
Many of our clients want to start a corporation, but they are unsure of how to proceed. They do not know if they should choose an S-corporation or a C-corporation. Smaller companies that expect little growth are good candidates for S-corporations. S-corporations can have up to 100 shareholders, and owners receive common stock and voting rights. The shareholders are taxed based on their profits.
C-corporations can have an unlimited number of shareholders, allowing for expansion and growth. However, these corporations are taxed twice. First, the company must pay corporate taxes. Second, the shareholders are taxed on their profits.
Owners can receive preferred stock when they operate a C-corporation, but the stock does not include voting rights. However, as preferred stockholders, owners can receive dividends before common stockholders do.
PJI Law will evaluate your business plan and growth potential before recommending the right option for you. Then our Northern Virginia business formation lawyers will help you start your business.
Limited Liability Companies (LLCS)
Northern Virginia limited liability companies are also a popular choice for new businesses. As the name suggests, owners have limited liability. If you follow the guidelines PJI will provide you, your personal assets and business assets remain separate, meaning debt collectors cannot seize your personal assets to collect debts. LLCs also do not have to follow the same rigid rules and guidelines that govern corporations. For example, if you start an LLC, you can avoid holding shareholder meetings or submit annual reports. You’ll also have flexibility regarding management and profit distributions.
Many Northern Virginia residents also prefer LLCs because of the tax flexibility they provide. When PJI Law forms your LLC, you can choose to be taxed as a corporation, partnership, or sole proprietorship. Your Northern Virginia business formation attorney will help you choose the best fit for your business.
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Liability for Sole Proprietors and Partnerships
In some cases, it makes sense to operate as a sole proprietor or enter a partnership. However, these entities do not offer liability protection. In addition, your assets and the business’s assets aren’t separate. That means a creditor can sue you over a business debt and collect your personal assets via a judgment. Before you form a sole proprietorship or partnership, speak to a Northern Virginia business formation attorney. Your attorney can review your business plan and assets to determine the risk you will assume with such a venture. The attorney can also go over options to protect your assets from business debts.
Steps for Forming a Business in Northern Virginia
Regardless of the size or type of business venture, you must follow some basic steps when forming your company. First, you have to choose a legal structure. Then you will select a name and make sure it is available. Choosing a location for the business is next on the list. Your Northern Virginia business formation attorney will ensure you follow regulations when choosing a site. Finally, you will obtain the permits and licenses and file the paperwork. Making a single mistake can slow down the process, so it’s wise to work with a business formation attorney from PJI Law.
Awards and Recognition
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By contacting PJI Law, PLC by any means, you agree that you are not forming an attorney-client relationship. You agree that any information you provide may not remain confidential nor be protected by the attorney-client privilege. Before we can represent you, we have to ensure that there are no conflicts of interest; therefore, do not share any confidential information, and/or information that could harm you if revealed to another party in your matter, until you have entered into a written agreement with us. An attorney-client relationship cannot be formed without a written agreement signed by PJI Law, PLC.