Northern Virginia Business Formation Attorneys

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:

• Sole proprietorship
• Partnership
• Limited liability company (LLC)
• C-corporation
• S-corporation

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.