Silver Spring Business Law FAQs
Consulting a Silver Spring business lawyer to get answers to your questions can save you from unnecessary expense and future disputes. The Law Office of Harry A. Suissa, P.C. has worked with business owners for more than 30 years. Here are some questions we frequently encounter:
- What main types of business structures are available for businesses?
- How is an S corporation different than a C corporation?
- When do you need business valuation?
- How can you shelter yourself from personal liability when doing business?
- What do you need to start a business?
Consult a Silver Spring small business attorney
If you need legal advice or representation from a Silver Spring small business attorney, contact the Law Office of Harry A. Suissa, P.C. at 877-708-9721. A free initial consultation is available in many cases. Our staff is bilingual in English and Spanish and we are located within easy walking distance of the Metro.
What main types of business structures are available for businesses?
Some of the main types of business entities include:
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How is an S corporation different than a C corporation?
C corporations are often used by large companies that are publicly held. The corporation pays tax on its profits and then pays dividends to stockholders, which are taxed again—hence double taxation occurs. However, C corporations may deduct many benefits paid to shareholders, whereas S corporations may not.
S corporations are pass-through entities, which means the owners pay taxes on profits and accept liability for losses based on their percentage of ownership in the corporation. Double taxation of shareholder dividends does not occur. However, S corporations have limitations that C corporations do not, such as a restriction of no more than 35 shareholders, one class of stock, and the company must be domestic.
When do you need business valuation?
If you are selling your business, you definitely need a business valuation to establish what your business is worth. Succession planning is another instance in which business valuation is important for determining adequate insurance and also the right type of insurance coverage. You also need business valuation to estimate taxes and determine tax funding.
How can you shelter yourself from personal liability when doing business?
One of the main reasons individuals establish a business entity is for protection against personal liability. Corporations, limited liability companies, and limited partnerships shelter business owners, provided that they are not involved in fraud or other illegal actions and as long as they uphold corporate status requirements. In certain unusual situations, the court may pierce the corporate veil, which means it holds directors or shareholders responsible for damages instead of the liability falling solely on the entity.
What do you need to start a business?
Doing business in a name other than your legal name requires a Doing Business As (DBA) and business license. Corporations and employers need a federal tax ID number. You need a seller's permit/resale license and business license if your business involves wholesale or resale of tangible taxable goods/services.
