BUSINESS LAW FAQ
Do I Need the Help of a Lawyer When Starting My Own Business?
The answer to this question usually becomes apparent upon discovering a mistake which needs to be fixed. It is a lot easier (and usually cheaper) to take pre-emptive action by ensuring all your I’s are dotted and T’s are crossed upon setting up your business. If everything is not set up correctly, unfortunately you may find yourself in a corner, a situation that could and should have been avoided. Put simply, it’s always best to have a lawyer on your side from the start.
What Type of Business Entities Can I Choose?
There are many business entities from which to choose, each with their unique advantages. The most common types of business entities are a limited liability company (LLC), corporation (C-Corp & S-Corp), sole proprietorship, general partnership (GP) and limited partnership (LP, LLP). This list is not conclusive and other options are available depending on the nature of your business and its overall intent. For more information, contact our attorneys.
What is an LLC?
An LLC is a Limited Liability Company, unique to the United States of America. This relatively newly recognized business entity allows for limited liability like a corporation, while allowing a pass-through tax structure like a partnership or a sole proprietorship. An LLC is owned by the members, of which there can be just one or many. With an LLC, there are formalities that must be observed in order to maintain this unique structure. For more information, contact our attorneys.
What is a LLP?
An LLP is a limited liability partnership. LLP’s offer limited liability to some, if not all partners (depending on how it is set up). In an LLP, partners are not liable for the negligence of other partners. LLPs also enjoy pass through taxation. For more information, contact our attorneys.
What is a GP?
A GP is a general partnership, the coming together of two or more people for the purpose of transacting business. This structure offers no liability protection, and enjoy pass through taxation. For more information, contact our attorneys.
What is a Corporation?
A corporation is a legal entity, distinct and separate from the people that own it. The people that own the corporation are called “shareholders”. Corporations offer limited liabilities to its shareholders, ensuring that while shareholders have a right to participate in profits, they are not liable for the corporation’s debts. There are different types of corporations, including the C-Corp & S-Corp, each with their own advantages. For more information, contact our attorneys.
How do I know which Business Entity is Right For My Business?
There are a multitude of factors to take into consideration when starting your own business and deciding what business entity to choose. Among a few consideration include, ability to take on risk, taxation, need for capital, future prospect & ambitions of the business & management structure and personal circumstances. When you begin your research, you will learn there are many considerations to think about and contemplate prior to choosing any business structure.
What is a Buy Sell Agreement?
This is an agreement that provides a “way out” for you and your business partners/affiliates. It is a contract between co-owners that control when owners can sell their interest, who can buy an owner's interest, and what price will be paid. For more information, contact our attorneys.
Do I need a Buy Sell Agreement?
If you are in business with anyone other than yourself, the answer, in short, is yes. For more information, contact our attorneys.
I am Not a US citizen, Can I set up a Business Here?
The short answer is “Yes”. We recommend that you consult with our business attorneys today for more information or to find out what your options.
How Can I Protect My Business’ Logo?
The most common way to protect your business logo is registering a trademark with the United States Patent and Trademark Office. If you have already been using a certain symbol, logo, sound, etc., you already have common law rights. By registering with the US Patent and Trademark Office you protect yourself even more in the event of a breach. For more information, contact our attorneys.
What is a Trademark?
A trademark is a symbol, sound, work or works legally registered or established by use as representing a company or product. For more information, contact our attorneys.
What Other Professional Advice will I Need?
Most business attorneys work with tax professionals to ensure that the tax structure of the entity makes sense for the individual(s) founding any particular entity. At Magomedov & Cronin, LLP we understand that you may already have a relationship with a tax specialist. We are happy to work with your tax specialist or alternatively recommend one for you. For more information, contact our attorneys.
