Business Law

Sole Proprietorships – The simplest of all business entities; it is owned by a single person with any number of employees. This business must file a fictitious name to operate under any name other than the owner's. The owner has unlimited liability.

Partnerships – This business form includes both general and limited partnerships. Both types have multiple owners. In a general partnership all owners have a say in the running of the business and each is fully liable for debts of the partnership. In a limited partnership, the limited partners have limited liability, but can not participate in the management of the business which is handled by a general partner or partners.  General partners have unlimited liability.

Corporations – This business form is incorporated by the state. Corporations limit their owners’ liability when properly established and maintained. Corporations must follow certain formalities to maintain their corporate status. To avoid double taxation, a corporation must elect to be treated as a small business by the IRS under subchapter S.  Click here to learn more.

Limited Liability Companies – This business form is the most versatile available. The LLC limits the liability of the owners for company debts, and unlike corporations, also provides some protection of company assets from the debts of its owners. LLCs may be taxed as sole proprietorships, partnerships, and corporations including sub S.  Click here to learn more.

Buy-Sell Agreements – Death or incapacity of a business owner can have a significant impact on the other owners.  Through incapacity the workload can shift to the other owners, and through death, an unintended third party can become a co-owner.  Both of these events can be planned for in advance with the use of a Buy-Sell Agreement.  A Buy-Sell Agreement can provide the terms for which the interest of a deceased or incapacitated owner can be purchased and financed.  These agreements can be financed through insurance or promissory notes.  This is beneficial to both parties as it ensures the deceased or incapacitated owner's family is taken care of and the surviving owners will not be burdened with someone they did not plan on getting into business with.

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