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Springfield Business Formation Lawyer

Starting a business in today's business climate can be discouraging; however, with the right legal advocate on your side you can realize your dreams with a sound strategy for your business to grow. As a Springfield business formation attorney for almost 25 years, Jamie A. Mastandrea has helped hundreds of entrepreneurs start their companies off on the right foot by advising them on the various business entities and strategies for their particular needs.

Whether you need assistance with contract review or contract preparation or if you simply want to know what the advantages and disadvantages are for the various business entities available, she can help.

Choose a Business Entity That Fits Your Business Objectives

  • Sole proprietorships: The business and owner are one and the same; legally you are one entity which allows you to deduct your net business loss from your personal income taxes. But, this also means you are personally liable for any debts, judgments or liabilities that may result from doing business and you are required to pay personal income tax for all net profits generated by the business.
  • General partnerships: Like a sole proprietorship, these are easy to create and maintain and the owners report his or her share of the business's net gains or losses on his or her personal income tax returns. At the same time, each partner is also personally liable for any debts, judgments or liabilities of the business and must pay personal income taxes on the business's net profits.
  • Limited partnerships (LP): This option allows you to easily attract investors because they only take on the liability of the total amount of their investment into the business. This allows an allocation of the business's liabilities and allows the general partners to focus on the day-to-day business operations.
  • C corporations: This provides the owners with limited liability for the debts and other liabilities and allows some benefits to be deducted as business expenses. By splitting the profits among the owners it may be possible to pay lower taxes.
  • S corporations: With an S corporation the owners have limited liability for the debts of the business and profits are taxed at each shareholder's individual tax rate. Owners share the business losses and offset other income by reporting any losses on their personal income tax returns at their own individual tax rates. Unlike a C corporation, no separate income tax return is required
  • Limited liability company (LLC): The main advantages are in the title itself, limited liabilities for the debts, judgments or other liabilities, even if the owners maintain significant control of the business. Also, the owners can choose whether the LLC should be taxed as a partnership or a corporation.
  • Professional corporation (PC): The main advantage to a professional corporation is that the owners are not personally liable for the malpractice or malfeasance of the other owners. One disadvantage is that each owner must be in the same profession.
  • Professional limited liability company (PLLC): This option allows state-licensed professionals such as doctors and lawyers to enjoy the same advantages as an LLC. Like a professional corporation, the members must also be of the same profession.
  • Limited liability partnership (LLP): An LLP is a business entity associated with law firms, doctor's groups and accountants or CPAs, and like all the other business entities, it has specific advantages and disadvantages depending on the needs of the partners and purpose of the business.

Contact Us

With the help of a knowledgeable Fairfax corporation and LLC attorney choosing the right business entity for your particular situation doesn't have to be difficult. It is important to be aware of the advantages and disadvantages of all the options to select the right course for your new venture. With the law firm of Jamie A. Mastandrea, P.C. on your side, together we can find the right type of business entity that best serves your needs.

Contact our Springfield, Virginia, office today to schedule an appointment.