Experienced Maryland Lawyer Guides Clients Through the Business Formation Process
Rockville attorney efficient in helping clients set up entities and organizations
Starting a business organization involves making important decisions that will have lasting implications. At The Berk Law Firm, in Rockville, I educate clients on the available types of business entities and advise them on which one is the most suitable for their planned enterprise. I also assist clients with drafting and filing all documents necessary and with legal issues that arise in the course of operations.
Knowledgeable on the full range of organization types available
I work closely with business clients to help them choose the organizational framework most suitable to their purposes. The most common business entities are:
- Sole proprietorships —Single-person ownership is the simplest form of enterprise. There are no organizational documents or government filings required. Income “passes through” the business to the owner, who reports it on his or her personal tax return. Owners have no protection from legal liability.
- Partnerships — When a business has multiple owners, they may enter an agreement spelling out the arrangement. The partnership may be general, where all the owners share income and debt equally, or limited, where some owners’ rights and responsibilities are restricted. The partnership is not taxable; partners pay taxes on their own profits.
- Limited liability partnerships — Like a traditional a partnership, an LLP is not a taxable entity. However, there are no general partners. All partners have protection against the LLP’s obligations and debts, including liability for other partners’ malpractice or negligence. LLPs are commonly used by doctors and other professionals.
- Limited liability companies — This form of ownership gives members protection from liability and freedom from the reporting requirements imposed on corporations. An LLC is not a tax-filing entity. Members report their income on their tax returns.
- Corporations — There are two types of corporations.. A C-corporation, the standard model used by companies seeking investors, is a taxable entity that can deduct major business expenses, sheltering earnings to shareholders. In an S-corporation, by contrast, all revenue passes through to shareholders who declare them as personal income. Both types shield shareholders from personal liability.
Once an entity is selected, organizational documents must be created, some of which are filed with state government agencies. I draft certificates of incorporation, by-laws, shareholder or partnership agreements, franchise agreements and other paperwork, including licenses and registrations.
Confidently addressing the ongoing needs of your business
After your entity is set up, my firm is immediately available to handle legal matters that arise in your business operations, such as banking and lines of credit, insurance coverage, corporate compliance, employee contracts, business-to-business contracts, investment strategies, leases, contracts, and purchase/sale agreements.
Consult with a dedicated Maryland business formation attorney
At The Berk Law Firm in Rockville, I provide clients with personalized attention while setting up business organizations and attending to their ongoing legal issues. Call me at 301-679-5009 or contact me online to schedule a free consultation to discuss your needs.