1. BUSINESS STRUCTURES VIRGINIA ENTITIES - WHICH IS BEST FOR MY BUSINESS?
MAY 22
2019

2. VIRGINIA BUSINESS ENTITIES
SOLE PROPRIETORSHIP
CORPORATION
S CORPORATION
LIMITED LIABILITY COMPANY
PARTNERSHIP
LIMITED LIABILITY PARTNERSHIP

3. SOLE PROPRIETORSHIP SIMPLEST AND LEAST EXPENSIVE BUSINESS STRUCTURE
NO LIABILITY PROTECTION – INDIVIDUAL AND BUSINESS ARE THE SAME – PERSONALLY LIABLE FOR ALL BUSINESS DEBTS AND LIABILITIES
ALMOST NEVER RECOMMENDED DUE TO LACK OF PROTECTION

4. CORPORATION KNOWN AS “C – CORPORATION”
FORMED BY FILING ARTICLES OF INCORPORATION WITH THE STATE CORPORATION COMMISSION
SUBJECT TO STRICT ORGANIZATIONAL AND OPERATING FORMALITIES
STOCKHOLDERS, DIRECTORS AND OFFICERS
LIABILITY PROTECTION
SEPARATE LEGAL ENTITY FROM ITS STOCKHOLDERS
TWO-TIERED TAXATION
CAN BE MORE COSTLY THAN ALTERNATIVES

5. S - CORPORATION KNOWN AS “S – CORPS”
FORMED BY FILING ARTICLES OF INCORPORATION WITH THE STATE CORPORATION COMMISSION –
SAME AS C CORPORATION IN MOST RESPECTS
“PASS THROUGH” TAXATION
ELECTION UNDER SUBCHAPTER S INTERNAL REVENUE CODE
STOCKHOLDERS, DIRECTORS AND OFFICERS
LIABILITY PROTECTION
SEPARATE LEGAL ENTITY FROM ITS STOCKHOLDERS

6. LIMITED LIABILITY COMPANY
KNOWN AS “LLC”
RELATIVELY RECENT ADDITION IN THE LEGAL WORLD
MORE FLEXIBILITY THAN CORPORATIONS WITH SAME BENEFITS
OWNERS ARE CALLED “MEMBERS”
NO LIMITATIONS ON OWNERSHIP – FEWER FORMALITIES
FORMED BY FILING ARTICLES OF ORGANIZATION WITH THE STATE CORPORATION COMMISSION
SAME AS C CORPORATION IN MOST RESPECTS
“PASS THROUGH” TAXATION
SOME DIFFERENCES IN WITHHOLDING TAXES

7. CHOICE OF ENTITY TYPE FACTORS TO CONSIDER
CHOOSING AN ENTITY TYPE IS A CRITICAL STEP WHEN SETTING UP A NEW BUSINESS. CARE MUST BE GIVEN THAT OWNER’S NEAR AND LONG TERM NEEDS ARE MET.
FACTORS TO CONSIDER
LIABILITY PROTECTION
CONTROL
TAX TREATMENT
EASE OF FORMATION AND MAINTENANCE
GOVERNANCE AND OPERATIONS

8. THANK YOU! Paul McCourt Curley 804-355-8273 paul.curley@sixeastlaw.com
Phone