Forming Your Company

Here at Anderson Legal Group, PC, in Virginia, we want to see you achieve your goals. If you’re thinking of starting a new business or adding on to your current business, or you simply need to make your home business official, then contact our office and we will set up your business entity for you.

When you hire us as your registered agent, we will be able to register your business with the state Corporation Commission, create the articles of incorporation, create the company operating agreement and create your first official minutes kept by the company. We will obtain your federal identification number and file your “S” election with the Internal Revenue Service, if appropriate.

A business formation attorney from our firm will work with you in conjunction with your tax advisor or CPA on the best entity for your needs, e.g., a C-corporation, an S-corporation, a limited liability company (LLC), or a general or limited partnership.

You may ask what the cost would be for maintaining your company or corporation in order to keep it in good standing with the state Corporation Commission. You can expect to pay an annual filing fee each year with the State Corporation Commission. These fees range from $25.00 for nonprofit corporations $75.00 for corporations and $100.00 for limited liability companies.

If you choose our firm to serve as your registered agent, our annual fee is $150.00, which becomes due in the month of your incorporation each year. As your registered agent, our firm will make certain that your annual meeting is documented and your annual report is filed in a timely manner. Furthermore, as your registered agent, should our firm receive any notice of adversary proceedings or lawsuits against you, you can expect our firm to promptly notify you.

Contact us today to get started. We have offices in Virginia Beach, Hayes, Newport News and Williamsburg.

Types Of Legal Entities

One of the jobs of a business formation attorney is to help you choose the best business entity for your company. Which one is best for you depends on several factors, including your management style, how you will be taxed, and how much risk you are willing to take on the business’s behalf. Here are some of the common types of business entities and their features:

Sole proprietorships – This is the default type of business entity for a single person running their own business who takes no steps to choose a business type. It can have only one owner and can be created without formalities. In a sole proprietorship, the owner makes all the management decisions for the business. All of the profits and liabilities of the business also belong to the sole proprietor. In other words, if the business cannot pay its bills, the sole proprietor is personally liable to the creditors. A sole proprietorship is not a legal entity – it does not exist apart from its owner.

General partnerships – A general partnership also does not need formalities. This is the default for two or more people running a business if they do not formally choose an entity. In a general partnership, two or more individuals agree to own the business and make management decisions for the business. The partners share the profits and financial losses of the partnership. The partners of the general partnership are also individually liable for the business debts if the business cannot pay for its bills. Additionally, a partner in a general partnership may bring contract, tort and criminal liability on to the other partner, because the partners are considered agents of the other. Partners, however, have a duty to act in the best interest of the partnership.

Limited partnerships – In a limited partnership, there are one or more general partners and one or more limited partners. The general partners make the management decisions of the business, while the limited partners do not. The general partners assume the risk that the limited partnership cannot pay its bills. They are personally responsible for the business’s debts. The limited partners, on the other hand, only risk the financial contributions they made to the limited partnership. Generally, both the limited and general partners share in the profits of the enterprise.

Corporations – These are legal entities that exist separately from their owners (the shareholders) and managers (the officers and directors). A corporation can buy and sell property, enter into contracts and be sued in its own name. A corporation can only be created in accordance with state statutes. Thus, in order to form a corporation, you must follow the specific rules required by the state of Virginia. Generally, the shareholders of corporations are not liable for any corporate debts, although they could lose their investment.

Limited liability companies – A limited liability company (LLC) shares the limited liability of a corporation but is not held to the same strict management requirements under law. The LLC is, however, a legal entity created only by state law. An LLC is generally defined as a business entity that consists of one or more persons. The LLC has managers, members and, sometimes, employees. The owners (or members) of the LLC participate in the management of the business. Members, managers and employees are not held personally liable for the debts of the business.

At Anderson Legal Group, PC, we can walk you through the process of choosing the right business entity and setting it up legally. In business law, there are no shortcuts, but a business lawyer can make the process so much easier.

Frequently Asked Questions About Business Formation

Starting a business involves several legal steps and requirements. Many entrepreneurs in Virginia Beach and the surrounding areas have questions about this process. Here, we address some of the most common inquiries.

What are the legal requirements and steps to form a business in Virginia Beach?

The process to form a business in Virginia varies depending on the type of entity you choose. Whether you are considering forming a partnership, an LLC or a corporation, specific filings and legal steps must be completed. At Anderson Legal Group, PC, our team can guide you through the process and ensure your business is set up correctly from the start.

What are the common challenges faced during the business formation process, and how can you overcome them?

Entrepreneurs may encounter several challenges when forming a business:

• Understanding the legal requirements: It can be daunting to grasp all the legal obligations involved in setting up a new business. It can also be a challenge to run your business as required by law if you don’t know the specific requirements for each entity type.
• Choosing the right entity: Deciding which business structure best suits your needs requires careful consideration of tax implications, liability issues and future growth.
• Compliance with regulations: Ensuring that your business complies with local, state and federal regulations can be complex.

To overcome these challenges, it is advisable to consult with a business formation attorney. At Anderson Legal Group, PC, we have significant experience helping businesses get off the ground. We provide clear guidance and support at every step to help you make informed decisions and avoid common pitfalls.

Contact Us Now To Get Started

Forming a business is an exciting venture that comes with its unique set of challenges. With professional guidance from our experienced attorneys, you can establish a strong foundation for your business.

To get started, please call 757-698-2244 or email us today for an appointment to see what we can do for you.