Business Law FAQ Part 2

Whether you are a seasoned business owner or just toying with the idea of starting a new venture, a business lawyer can help you understand the legalities involved and protect your assets. Here are some of the most FAQ about business law.

What’s the difference between a merger and an acquisition?

They are similar in that 2 or more entities are joining to become one.

How is a C corporation different than an S corporation?

Among other more complex differences an S Corp enjoys certain tax advantages over a C Corp, but ownership in an S Corp is limited.

What is a non-profit corporation?

This is an incorporated entity that provides limited liability to its members, officer and directors, but no individual actually owns the entity. Oftentimes non-profit, non-stock corporations qualify as income tax exempt. 

What is a Limited Liability Corporation (LLC)?

A business entity created under statute and contract law owned by members. LLC’s enjoy traits of a partnership – the LLC is only taxed once at the partner level, and traits of a stock corporation – limited liability of officers, directors and members.

What is a corporation?

A business entity created under state law and owned by shareholders.

I’m thinking about starting a new business. What are some of the issues I should consider before making any big decisions?

 Among other MANY, MANY issues, ownership, management, taxation, future owners, succession of owners, purpose of the entity, liability.

Do I have to hire a lawyer if I want to start a business?

No, but it helps.

How do I protect my personal assets while starting a business?

Either start a stock corporation or an LLC. Don’t own the business as an unincorporated association or sole proprietorship.

Top Business Attorney in Virginia

Businesses can have very complex legal challenges. However, a business attorney can help you fully understand these and operate a thriving business. Contact Cook, Craig and Francuzenko to learn more.