BUSINESS LAW FAQ
Q: What does a business attorney handle?
A: The legal questions involved in running a business, such as commerce law, knowledge of consumer transaction law, and expertise in forming and creating business entities. Attorneys for business law also handle transaction agreements and legalities, as well as secured transactions and debtor and ceditor legal info.
Q: What Business Entity Is Best For Me?
A: Business owners should know of the main types of organizations that are able to be created, and decide on the entity they want based on which one best aligns with the long term goals of the organization.
- Sole Proprietorship
- A Single owner business, usually a simple corporation that can be established cheaply and easily for newer companies. Ownership is wholly vested in the one owner, and a new company would need to be formed to address issues of sharing ownership or equity in the company or its assets. In a Sole Proprietorship, the owner of the business is taxed on all the income of the business.
- A Partnership is created when two people conduct business as co-owners of a for profit entity. Each general partner has a say in the management, ownership of the company’s assets, and a percentage or fixed amount of the profits and losses of the organization. Liability also falls on the partners individually, with both persons personally liable for business related obligations. There can also exist limited partnerships, where liability for operations and fiscal responsibility falls to one party, and the other party is a limited partner, contributing only capitol.
- Limited Liability Organizations
- LLCs are limited liability companies. They serve to separate the principals and their personal wealth from the liabilities incurred by the business. They create what is known as a corporate veil, which insulates the person behind the company. Bear in mind that in some instances the corporate veil can be breached, it is not impregnable. There are also limited liability partnerships, which are much the same but for organizations whose ownership is shared with several individuals or entities.
Wayne Gardner, Attorney
Buntrock & Gardner Law, PLLC
Mesa, AZ 85203