Safeguard your business’s success with the help of a business attorney
What legal issues may plague your Central Florida, Florida, business? Do you have a competent business attorney in Central Florida, to help you avoid these mistakes? We understand businesses face challenges and opportunities here at Perez-Calhoun Law Firm, P.A. Our years of dedicated service and knowledge of local company laws can help you reach your business goals.
Our law firm has offered excellent business law guidance for years. Our knowledgeable attorneys tailor solutions to startups, family-owned businesses, and corporations. We understand local laws and have defended Central Florida businesses, so we can help you with any legal difficulties.
When they affect your business, legal difficulties can be daunting. We streamline the process and reassure you. Contact us if you need a trustworthy Central Florida, FL, business lawyer. Consult Perez-Calhoun Law Firm, P.A., to preserve your business’s future.
What is Business Law?
Business law is a complex and constantly evolving field. Businesses of all sizes need to know the legal principles that apply to their operations to avoid legal problems. A business attorney can help businesses understand and comply with the law and represent them in legal disputes.
Business Formation: Setting the Foundation for Success
Starting a business is an exciting journey. However, that begins with a critical step—business formation. Choosing the proper structure for your enterprise is not just a legal requirement—it’s the cornerstone of your business’s future. We will explore the importance of business formation and the key considerations to remember below.
Why is Business Formation Important?
Business formation is the process of legally structuring your business entity. The structure you choose will impact various aspects of your business, including:
- Legal Liability: The type of business structure you select determines your liability for business debts and legal obligations. Some structures offer personal asset protection, while others don’t.
- Taxation: The way your business is taxed can significantly affect your financial health. Different structures have varying tax implications, from pass-through taxation to double taxation.
- Ownership and Control: Business formation defines how ownership and control are distributed among partners or shareholders. That also outlines decision-making processes.
- Capital Raising: Certain structures, like corporations, provide options for raising capital through the sale of stocks or shares.
- Credibility: Your choice of business structure can affect how potential clients, partners, and investors perceive your business.
What are the Types of Business Structures?
A business structure is the legal form that your business takes. It determines how your business is taxed, how much personal liability you have, and how you can raise capital. The most common types of business structures are:
Sole Proprietorship
A sole proprietorship is a business owned and operated by a single individual. The owner is personally liable for all debts and obligations of the business. If the business fails, the owner could lose their assets, such as their home or car.
Sole proprietorships are the simplest and most common form of business ownership. They are easy to set up, and there are no separate taxes to file. However, they offer the least liability protection.
Here are some of the essential features of a sole proprietorship:
- Owned and operated by a single individual
- Simple and easy to set up
- No separate taxes to file
- The owner is personally liable for all debts and obligations of the business.
- All profits go to the owner.
- The owner may have difficulty raising capital.
- The owner may have difficulty attracting and retaining employees.
Partnership
A partnership is a business structure in which two or more people agree to share the profits and losses of a business. Partners are jointly liable for the debts and obligations of the business.
There are two main types of partnerships: general partnerships and limited partnerships.
- General partnerships are the most common type of partnership. All partners in a general partnership have unlimited liability, which means that they are personally liable for the debts and obligations of the business. If the business fails, the partners could lose their assets, such as their homes or cars.
- Limited partnerships have one or more general partners with unlimited liability and one or more limited partners with limited liability. Limited partners are only liable for the amount of their investment in the partnership.
Partnerships are relatively easy to set up, and there are no separate taxes to file. However, they can be more complex to manage than other business structures, such as corporations or limited liability companies.
Here are some of the crucial features of a partnership:
- Owned and operated by two or more people
- Simple and easy to set up
- No separate taxes to file
- Partners share the profits and losses of the business.
- Partners are jointly liable for the debts and obligations of the business.
- Partners may have difficulty raising capital.
- Partners may have difficulty attracting and retaining employees.
C Corporation
C corporations are the most common type of corporation in the United States. They are separate legal entities from their owners, which means that the owners are not personally liable for the debts and obligations of the corporation. However, the profits of a C corporation are taxed at the corporate level and then taxed again when they are distributed to the shareholders. That is known as double taxation.
S Corporation
S corporations are a type of corporation that is taxed as a pass-through entity. The profits and losses of the S corporation are passed through to the shareholders and taxed on their tax returns. S corporations offer limited liability protection for their shareholders, but they do not have to pay corporate taxes.
Limited Liability Company (LLC)
Limited liability companies (LLCs) are a hybrid business structure that combines the features of a corporation and a partnership. LLCs offer limited liability protection for their owners and are not taxed as corporations. The profits and losses of an LLC are passed through to the owners and taxed on their tax returns.
Non-Profit Organization (NPO)
Non-profit organizations (NPOs) are organizations not created for profit. NPOs are typically created to provide a social or public benefit, such as healthcare, education, or environmental protection. NPOs are exempt from federal income tax but can be subject to several other taxes and regulations.
Business Dissolution: Winding Down Your Business and Ceasing Operations
A business in Florida may be dissolved for various reasons, such as insolvency, retirement, or the owners’ decision to pursue other business opportunities. When done correctly, the process involves several steps to ensure the business winds down its operations responsibly.
Business Dissolution
Business dissolution is the process of winding down a business and ceasing operations. It can be initiated by the business owners, creditors, or the state.
Here are some specific steps that may be involved in a business dissolution in Florida:
- Notify creditors and other interested parties. The business must notify its creditors and other interested parties of the dissolution.
- Terminate all business contracts. The business must terminate all of its business contracts.
- Liquidate the assets of the business. The business must sell its assets and distribute the proceeds to the creditors and owners.
- Pay off all debts. The business must pay off all its debts, including taxes and other liabilities.
- Distribute the remaining assets to the owners. Once all debts have been paid, the remaining assets are distributed to the owners.
- File the necessary paperwork with the state. The business must file the necessary paperwork with the state to dissolve the business.
Contract
Contracts are legally binding agreements pervasive in our personal and professional lives. If you own or run a business, contracts are persistent in your interactions with employees, independent contractors, vendors, commercial landlords, banks, utilities, insurance providers, and customers and clients.
Contracts are unique and essential for business transactions because they are enforceable against the parties. If one party breaches the contract, the other party has legal recourse for any losses they suffer.
Here are the essential elements of a legally valid contract:
- Offer and acceptance: There must be an offer from one party and an acceptance of that offer by the other party.
- Consideration: Each party must give something of value to the other party.
- Intention to create legal relations: The parties must intend for the contract to be legally enforceable.
- Capacity: The parties must have the legal capacity to enter into a contract.
- Legality: The contract must be for a lawful purpose.
The contract itself can be a written document or an oral agreement. However, it is always best to have a written contract, as this will provide more clarity and certainty about the terms of the agreement.
“Contracting” refers to negotiating and entering into a contract. The process can be complex and time-consuming, but it is crucial to take the time to do it right. By following these essential elements, you can ensure that your contracts are legally valid and enforceable.
Business Creation and Litigation
Starting a Business
Starting a business can be a very overwhelming process. You must seek the experience and advice of a Florida Certified Public Accountant and a Florida-licensed attorney if you are considering opening or purchasing (or even a portion of) a business. Perez-Calhoun Law Firm can help you navigate this scary but thrilling process. The most critical part is that before you commit to anything or sign anything, you seek advice on financial and legal matters.
Business Contracts
When you start a business, there are many contracts that you will need to understand before signing. Some examples are partnership, lease/rental agreement, sale/purchase, operating, service contractor agreements, etc. Perez-Calhoun Law Firm can provide the legal counsel you need before, during, and after you have signed any of those contracts. As a reminder, NEVER sign something you do not understand. Before you sign, seek the advice of a lawyer.
Business Litigation
If your business is being sued or contemplating suing a business partner, please seek legal counsel immediately. Remember, there are deadlines that you must meet if you want to preserve your rights. The most efficient way to protect your business is through preventative legal care and counsel. Call us to see how our law firm can provide legal options to protect your business from expensive litigation.
Why Do I Need To Hire a Business Attorney in Central Florida?
If you are starting a business or have any legal questions related to your business, it is a good idea to hire a business attorney in Central Florida. A business attorney can help you with a variety of legal issues, including:
- To form a business: If you are starting a new business, you must form a legal entity. That could be a sole proprietorship, partnership, limited liability company (LLC), or corporation. An attorney can help you choose the proper entity for your business and file the necessary paperwork with the state.
- To draft contracts: Contracts are essential for business transactions. They can be used to set out the terms of an agreement, such as the price, quantity, and delivery date of goods or services. A lawyer can help you draft clear, concise, and enforceable contracts.
- To resolve disputes: If a dispute arises between your business and another party, you may need to take legal action. An attorney can help you file a lawsuit, negotiate a settlement, or represent you in court.
- To comply with regulations: Businesses are subject to various regulations, such as those governing employment, environmental protection, and taxation. A lawyer can help you understand and comply with these regulations.
- To protect your assets: If your business is sued, your assets could be at risk. An attorney can help you protect your assets by drafting a business entity that limits your liability.
If you are starting a business or have any questions about business law, it is a good idea to get legal help. An attorney can help you protect your interests and ensure that your business is set up for success.
Ready to Secure Your Business’s Future?
Are you facing complex legal challenges related to your business in Central Florida? Look no further than Perez-Calhoun Law Firm, P.A., your trusted source for experienced legal counsel. We understand that businesses in our community encounter various issues, and our competent legal team is well-prepared to address them.
Our business lawyer in Central Florida, has plenty of experience in handling various aspects of business law, from formation to contract disputes and everything in between.
We are deeply rooted in the Central Florida community and have an in-depth understanding of the local business landscape and regulations, allowing us to provide you with tailored solutions.
In addition to our core business law services, we offer related practice areas, including real estate law. That means you can rely on us for various legal needs.
Lastly, we prioritize our clients’ needs and work diligently to find effective and cost-efficient solutions to their legal challenges, such as family law, litigation, and estate planning.
Don’t wait to address your business’s legal needs. Call our business attorney in Central Florida, today to discuss your concerns and explore how we can assist you. Whether you’re dealing with contract disputes, employment issues, or any other business-related matter, we’re here to provide you with the guidance and support you need.
Contact Perez-Calhoun Law Firm, P.A. for a free initial consultation today and take the first step toward resolving your business’s legal issues.