As the owner of a company or an up and coming corporation, you may be trying to decide if you really need to use a corporate attorney to incorporate. Whether you are planning to become, or already are a legal corporation, then the answer is a resounding yes. Because corporations are held to a higher set of standards and rules, it is essential to have the right attorney on your side. The attorneys at Ferguson, Rawls, and Raines PC. have the expertise to assist you no matter where your business is currently. We offer a wide range of business law services such as LLC formation, commercial law, corporate law, and business formation.
What Role Does a Corporate Lawyer Play?
Business law attorneys offer a wide variety of services. Corporate lawyers advise a corporation on their legal rights, responsibilities, and obligations on a wide range of legal and business issues. Corporate lawyers assist in determining which entity you should use for your business when starting up, as well as to help in the long run to ensure that employees, shareholders, and directors interact with each other under the rules of the firm. A corporate attorney can also assist with employment issues, acquisitions, loan closings, and the negotiation and preparation of contracts.
What is a Corporation?
A corporation is a business or entity that is given many legal rights that do not apply to the owners of the company. To become a corporation, or to incorporate, means to legally create and file your business under state law in order to create a legal entity for taxes and other liabilities. By incorporating your business, you help to ensure that the owners of the corporation cannot be held personally liable in the event the company is sued. Another reason for incorporating your business would be for tax purposes, as there are several advantages and disadvantageous tax-wise to file as a corporation. A legal professional will be able to further assist you in determining which tax laws apply to you and to help to ensure your corporation is in compliance.
What type of corporation or LLC is best for your business?
If you are just starting out in your endeavor, you will need to determine whether an LLC or a corporation is right for your business. A corporation is an entity created under state law, created to form a distinct legal entity for tax purposes and various legal issues. Its owners are called shareholders, and they are allowed to either manage the business themselves or hire non-owners to manage the business for them. Corporations file income taxes based off of their profits and whether or not they pay out dividends to their shareholders. The liability protection under a corporation typically ensures its shareholders cannot be held responsible for debts, taxes, and other legal claims.
A Limited Liability Corporation is another type of organization that is also created under state law and has similar protection to a corporation but with fewer requirements and formalities. This kind of entity is typically owned and operated by the same person but are legally allowed to hire non-owners to manage the business for them. For tax purposes, it can fall under three different brackets, a sole proprietorship, partnership, or a corporation with a special election. A business attorney will be able to assist you in deciding which one is right for your business. Though similar to a corporation, the liability protection within an LLC does not include personal loans or obligations which as still the responsibility of the member or owner.
At Ferguson, Rawls, and Raines PC, we understand that there are many things to consider when choosing to incorporate your business. Our business law attorneys have a wide range of expertise and can assist you in all your corporate needs. Contact us today to learn how we can assist you with your business.