1590 Westbrook Plaza Drive, Suite 203
Winston-Salem, NC 27103
Business law attorneys can help you start your company off on the right
path. If you plan to undertake the task of forming a business you will find many
challenges ahead but also many potential rewards. A new business venture can
test your strengths and weaknesses as well as encourage your creativity and
entrepreneurship. For most of our business owners we advise that one primary
issue of concern is protecting the company and the owner from liability.
Determining which form of limited liability entity to use depends on the nature of
the business and on the tax advantages each business entity will provide.
Limited Liability Company
In North Carolina there are some distinct protection advantages to being either a
corporation, limited liability company, or limited liability partnership. The advantage of
these entities is that they provide to the owners, officers, members, directors, managers,
and other representatives limited liability protection. This means that the business entity,
rather than the individuals, will be held responsible in the event of any legal action, claim,
or cost. The limitation of liability means that, in general, the only risk that an owner bears
is the investment that he or she has placed into the business entity. Hence, the business
entity shields the owner from having claims filed against their own personal assets.
Once a business entity is established it is important to follow the laws that regulate those
entities. Often we find when reviewing corporate records of businesses that they have
failed to adequately meet the Corporate Formality Test. This test requires the business
entity to perform and act as a corporation or business, separate from the personal
transactions of its officers. Good planning and periodic review by a business law attorney
will ensure that you continue to reap the benefits of your limited liability entity.
We have over 40 years experience in North Carolina business law, and
our firm can help you set up your S-Corporation, C-Corporation, Limited
Liability Company, or Non-Profit Entity.