What is an LLC? Virginia Business Lawyer Provides Overview of LLC Provisions and Benefits
If you are thinking about starting a new business in the Commonwealth of Virginia and you are just getting started you will at the very least want to register your business as a limited liability corporation. Setting up a new start up business as a limited liability corporation will help you avoid personal liability for actions the organization makes later. Failure to create an LLC could co-mingle your personal assets with your new business venture. Regardless of the size of your business operation it is always in your best interest to obtain an LLC to avoid potential litigation that could ensue later.
Another excellent benefit of an LLC is the way the entity will be taxed. Unlike complex Corporation tax forms an LLC will be treated and taxed as part of your personal income. This will involve an additional schedule to your personal tax form. So although you are shielding your liability of potentially losing your personal assets if there is litigation and a judgment for damages against your business, the entity is locked with your personal taxes to make it easier for you to pay your income tax.
When you start a limited liability corporation there are no shares of stock or messy entanglements with many owners. These entities are treated more like a sole proprietorship or partnership, except that the limited liability corporation will not hold you personally responsible for the debts of the business. They are very cost effective and are easy to dissolve. In the event your business increases in size they can also convert into a corporation. if your business is in the process of becoming a corporation you will want to hire an attorney to discuss the tax benefits of being taxed as a C Corporation versus an S corporation.
The limited liability corporation is one of the most effective government concepts ever created. By taking advantage of the liability shield and the tax benefits you will better position your business for success. In addition your LLC will need a thorough well written operating agreement. You do not want to try and save money by downloading a cookie-cutter LLC operating agreement. Instead it is worth the cost to actually have an attorney personally tailor your operating agreement to your business model. Taking these steps will help you as a new business owner effectively manage some of the most difficult situations that can arise in business ownership. Minimizing your risk of failure should always be treated as a worthwhile expenditure.
At the strong law firm we can help you with all your business needs. We can register your limited liability corporation with the state Corporation commission in Virginia. In addition we can prepare the operating agreement and thoroughly explain the tax benefits. If you are a foreign business we are also able to help you establish your business in the Commonwealth of Virginia. We can also help you appoint an agent so that in the event you are sued that agent will receive the summons and the complaint. Give the Strong law firm a call today we look forward to working with you and helping your business grow.