Creating a business entails at least some risk, such as a loss of investment and legal liability. Fortunately, setting up your business with a legal entity can help shield you personally from liability and bolster the company’s management.
A Virginia limited liability company (LLC) formation lawyer could help you set up the entity that best serves your business interests. Our experienced business formation attorneys could help you craft your LLC to match your needs by understanding your company and its projected future.
An LLC is the legal entity of a business, and it typically has members who are the owners. An LLC can have members as managers or one or more independent managers employed by the members to run business operations.
In LLCs, members have limited liability, meaning that they are only responsible for their contribution to the company. If the business gets sued or files for bankruptcy, only the LLC’s assets are affected, rather than the individual members invested in the company.
An LLC can also be customized to fit a particular business’s needs, as its governing documents can be created to vary from default rules set by state statute. Once formed, an LLC can add members, change its ownership makeup, and modify how the business is run by amending its operating agreement—a governing contract between the LLC, its members, and its managers.
Perhaps most significantly, an LLC can be taxed like a partnership, with income tax due at the level of the members rather than at the level of the business. Creating an LLC properly is where a Virginia LLC formation lawyer could lend crucial advice.
The mechanical requirements for forming an LLC are not demanding, but they must be followed in order to conduct business as an LLC in Virginia. First, the business must have a name that is not used by another business in the state. Ideally, a business owner will have a unique name that is trademarked for protection.
Next, an LLC requires articles of organization filed with the Virginia State Corporation Commission. The articles lay out the basic information of the company, including the initial owner or owners and the business address, as well as the company’s registered agent (such as a manager or a professional registered agent located in Virginia who accepts service of process). Importantly, this registered agent’s name and address will be public record and cannot be a PO box, so it’s important to carefully consider who is willing to serve as a registered agent. If no one in the company is willing, you can hire a corporate service or a law firm to perform the role.
After these simple steps comes the more important part of creating an LLC: the operating agreement. As mentioned above, the operating agreement generates the key provisions governing the LLC, its members, its structure, and its responsibilities. The operating agreement can be drafted to anticipate future issues, account for changes in ownership and leadership, and provide terms preferred by the business’s owners at the outset.
A business attorney familiar with forming LLCs in Virginia could work with a business founder to make their new entity a reality. They could provide support in filing the articles of organization and drafting the operating agreement as well as evaluate the likely needs of a budding business.
Starting your business on the right foot sets the tone as you grow and develop the company. Forming an LLC is one way to protect yourself from liability and clearly establish how your business will work.
A Virginia LLC formation lawyer from our firm could set up your business as you desire and support your business’s initial needs. With the benefit of our Handshake portal and our business attorneys, we can draft the documents you need to set up your LLC and conduct your business. Contact our office to learn more and get started on your LLC formation today.
When setting up your company or preparing business agreements, a well-practiced Virginia business lawyer could help save you from future headaches and costly litigation.
The legal professionals at our firm use our Handshake Portal to help get you started in the right direction for your contractual needs without the complicated legal jargon. To help minimize your legal costs, we provide these services at a fixed fee rate. Contact us today to schedule a consultation and get started.
