Business Law
From starting your own business to ensuring corporate responsibility, making sure that you have the right legal advice is crucial. At Byrd & Byrd, many of our attorneys have run businesses, earned their M.B.A., or are trained in understanding business law. This gives us the personal experience and expertise to be able to help you handle the legal side of business while you focus on growing and handling your own business.
For a quick response to your questions regarding Business Law, contact us at 301.464.7448.
Table of Contents
Business Formation | Bylaws | Choice of Entity | Membership/Partnership Agreements | Non-Profit 501(c)(3)
Business Formation
Starting your own business is both an incredibly exciting and terrible daunting time in your life. It is a serious risk that can result in great success – when done correctly, legally, and with the right counsel. When you are starting your own business, it is important to ensure that you are completely within your legal rights and restraints at all times.
Here at Byrd & Byrd we can help you determine your Choice of Entity, whether it be a Corporation, Limited Liability Company (LLC), or a Partnership orSole Proprietorship. Furthermore, we can develop Bylaws which layout how your business will be run and by which predetermined rules. Finally, we can provide you with membership and partnership agreements for your business’ customers and contacts.
Bylaws
In any relationship, you cannot go into it without having discussed the important issues first. For example, it is important to discuss where you will be operating, how members or shareholders will be added, and how many, and the list goes on. In order for a business to be successful, some ground rules, or bylaws, must be agreed upon beforehand. There will be a number of issues addressed within your company’s bylaws, such as identifying information (name, address, etc.); procedures for shareholders and stocks; procedures for amending the bylaws; and much more.
For a quick response to your questions regarding bylaws, contact us at 301.464.7448.
Choice of Entity
There are many different types of entities for which your desired business may be eligible. When making this decision, you must evaluate the conditions of your desired business. These considerations include the size and cost of the entity; tort and tax liability; regulatory requirements as determined by state government as well as local municipality; and protection of your intellectual property, services, and products as wekk as tax considerations. There are three main types of entities: corporations, limited liability companies (LLCs), and partnerships/sole proprietorships.
Corporations are created under state laws with as separate legal entities with expressed rights and liabilities that are separate from its members. They often consist of a board of directors or shareholders who are responsible for filing annual reports to the state. When creating a corporation, you must file Articles of Incorporation, obtain an Employer ID Number (EIN), designate, create and meet as a Board of Directors and Shareholders.
Limited Liability Companies (LLCs) are often considered advantageous for a small to medium-sized business. Starting out requires filing the proper Articles of Organization with the state, obtaining an EIN and signing an Operating Agreement. As it states in the name, there is limited liability protection for the owners, called members. Advantages of an LLC over a traditional corporation include the no requirement for frequent corporate meetings. As with any business, there are necessary periodic filings with the state in order to keep the LLC status active.
Partnership/Sole Proprietorship occurs when there is one or two people running the entire business. Start-up fees are much lower and there is no annual compliance. All business-related assets become subject to the owner’s personal liabilities and visa versa. Although simpler to establish and operate, this is the least desirable form of business entity if liability is of concern.
Membership/Partnership Agreements
These are the agreements between your business partners. A successful business venture is often one where the entrepreneurs take the time before going into business to write up an agreement detailing how the business will be run, who will be responsible for what business activities, and how disputes will be resolved. A good business law attorney can help you anticipate what issues may arise, before they arise, and help you draft an agreement that will allow you to concentrate on growing your business.
For a quick response to your questions regarding membership or partnership agreements, contact us at 301.464.7448.
Non-Profit 501(c)(3)
These are different from businesses in that they are tax-exempt, nonprofit associations, meaning they are exempt from federal or state taxes, income taxes or state sales or use tax. The number 501(c ) refers to the statute in the Internal Revenue Code (I.R.C.) that establishes their tax status. Such organizations can be religious, educational, charitable, literary, or scientific in nature. They can also include amateur sports leagues, the arts, and specific issue awareness.
In the state of Maryland, there is an organization that promotes the creation and cooperation of nonprofit organizations within the state. Maryland Nonprofits provides services, awareness, and information regarding creating your own nonprofit and networking with other similar associations in the state.
For a quick response to your questions regarding Nonprofits, contact us at 301.464.7448.
