Shoals Insider’s Ask The Attorney: Business 101

Ask the Attorney Columnist James Irby

 

It’s the new year and your business is growing or, maybe you are just getting your business off the ground. It’s important to understand your options and how the law works to protect your cash flow, business partners, and family.

 

If you’re contemplating opening your own business, reorganizing, or just need help with your business give James Irby, P.C. a call. We can help.

 

It can sometimes feel like you have a daunting number of options and all sorts of terms get thrown around which can leave you feeling that it is just too complex. Don’t worry, it isn’t and you can do this! Don’t let confusion over the various entities and taxes deter you any more.

 

Small businesses are the lifeblood of our economy, both here at home and the nation at large. Many businesses elect to incorporate as Limited Liability Companies. We’ll cover your other options in another article, but if you want to know now, give us a call and we will be happy to help.

 

  1. LLCs are simple- You’ve probably heard people talk about them and how easy they are to get started. Well, they are but be careful because there is more than meets the eye and if you aren’t completely comfortable with all the terminology, an online help website may leave you ill-equipped to set up the entity which can facilitate your desired outcome.
  2. LLCs offer protection- This is perhaps the most sought after feature. The LLC is a legal fiction which sits between you and your various contracts, clients, etc. In the event a contract falls through, a person is injured, or any other catastrophic event, the LLC may protect you and your personal possessions. It doesn’t replace insurance but it is a good backstop to protect you and your family.
  3. LLCs offer tax advantages- LLCs are extremely flexible. Uncle Sam and the various states have allowed for all kinds of flexibility which makes the LLC a top choice for small businesses. An LLC can elect to be taxed by the IRS as either a disregarded entity, an S-Corp, or a C-Corp. If you need tax advice when it comes to your business give us a call. We can help you plan and reorganize so that your business can flourish.
  4. LLCs are easy to run- Some people can be dismayed at the formality, which is a necessary part of a corporation. The good news is that in an LLC, that isn’t as much of a problem. LLCs don’t have shareholders. LLCs don’t have Boards. Instead, LLCs are managed by their members, or a designated manager. This streamlines the process and helps you get down to the business of making money.
  5. LLCs are freely alienable- We had to put some legalese in here didn’t we? This is the idea that members can come and go easily. If you have partners in your LLC and want to know more about how to sell, or alter, your LLC to reflect changes in your business, give us a call because we have great experience in working with Alabama LLCs.

 

Is an LLC the appropriate entity for you? Do you need to sell your business? Give us a call.  We are happy to assist you with your business.

 

If you are looking to start a business, reorganize your business, or just want to know what your options are, we encourage you to give us a call at (256) 766-7778.

No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

We’re going to be accepting questions from the Shoals Insider readers, so we encourage you to send us an email (info@jamesirby.com) or get in touch with us. We’ll answer your questions and put it together so we can help everybody in our community. Don’t worry, your privacy is completely protected.

 

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