Bountiful Law's staff is very experienced in all aspects of business law for Woodway businesses. Our services begin with considering the different forms of organization including sole proprietorships, partnerships, LLCs, Corporations and other less popular types.
We can provide all of the legal formation paperwork and also business tax issues.
Please contact our office for a no cost, no obligation 30 minute initial business legal consultation.
Business Lawyers Nearby Woodway, Washington 98020
Formation, Filing and Start-up Legal Services For Woodway Businesses
Beginning a business in Woodway, WA is an interesting time. You have a dream that became a strategy. Currently it is time to put your plan into action by selecting a service structure together with an experienced Lawyer to produce a service entity. Choosing a framework has a resilient effect on business tax obligations, documentation requirements, and individual obligation.
Woodway Business Structures
Limited Liability Company (LLC): An LLC is a popular choice among new Woodway business owners. It has fewer maintenance requirements than a corporation. It is also a separate legal entity from the owner, meaning you are not personally responsible for the conduct and debts of the company.
Additionally, for single-member - or one owner LLCs - the IRS does not require the business itself to pay taxes because they consider it a disregarded entity. However, if you are the sole owner of an LLC, you must report business profits or losses on your individual income tax return.
Woodway, WA Business Lawyers
Like an LLC, a company is an independent legal entity from the proprietor(s). You are not personally responsible for the liabilities and debts of the business. There are 2 types of companies: S-Corporations (S-Corp) and C-Corporations (C-Corp). Both choices require formalities such as short articles of incorporation, company bylaws, and director and shareholder meetings.
The main differences between the two corporations are taxes and ownership. Note that your business will be taxed as C-Corp unless you elect to be taxed as an S-Corp.
Taxes: C-Corp profits are taxed twice, a tax principal known as ‘double taxation.’ Taxes are paid once by the business entity and once by the shareholders.
For example, if your Woodway business makes $100,000, the business pays tax obligations on that earnings. The continuing to be funds are distributed to you and other investors. You then pay individual federal and/or state earnings tax on your dividend.
Ownership: WoodwayC-Corps have no shareholder limit.
Taxes: S-Corps have pass-through taxation. Pass-through taxation means that the Edmonds' business entity does not pay corporate taxes. Instead, the owners pay taxes on the profits or losses of the company on their tax forms.
Ownership: S-Corps are limited to no more than 100 shareholders.
Business Structures Our Lawyers Advise Against For Woodway Companies
General Partnerships: General partnerships are not a good idea because you are personally liable for all business debt, whether incurred by you or your partner. Personal liability opens the floodgates for all sorts of issues that are avoidable with other business structures.
Get Started Today
Business frameworks influence your business's tax obligations, upkeep requirements, and individual obligation. Business Lawyers at Bountiful Law near Woodway assist you pick one of the most useful structure for your long-term objectives. Call today to schedule a legal appointment at 425-775-9700.
On-Going Legal Services For Woodway Businesses
A Woodway business only starts with the formation. To keep an Woodway, WA business running, you must comply with Washington State (And/Or other states) maintenance laws. Businesses that do not stay up-to-date with required meetings and documents are vulnerable to tax liability and loss of limited liability.
Should your Woodway business lose its limited liability, those seeking legal action against it can pursue your personal assets. At Bountiful Law nearby Woodway, our business lawyers provide the necessary maintenance services to keep your business compliant and property safe.
Business Maintenance Services For Woodway
Registered Agent: As your registered agent, our lawyers accept documents on behalf of your business, including annual reports, service of process, and other notices.
Conducting Annual Meetings: Woodway corporations must hold an annual shareholder meeting once a year where they address the following topics
- Election of directors when necessary
- The status of the corporation
- Upcoming plans or projects
- The annual report
- Voting on essential issues
Drafting Documents: Every Woodway business needs documents that address internal operations. Two primary documents are corporate bylaws for S-Corps and C-Corps, and operating agreements for LLCs.
Woodway, WA Business Lawyers
All documents must be tailor-made to address the unique purposes and functions of your Woodway business. Therefore, "one size fits all" documents are not sufficient for continuity of practice and legal protection. Papers must be drafted with precision to ensure everyone - both inside and outside the company - understands the rules and expectations. Note the requirement differences between the two business documents;
- Corporate Bylaws
- Information regarding;
- Identity, including whether it is a private or public entity
- Statement of Purpose
- Board of Directors
- Shareholders’ Meeting
- Conflict of Interest
- The procedure for bylaw amendments
- Information regarding;
- Operating Agreement
- The percentage of member's ownership
- Voting rights and responsibilities
- Powers and duties of members and managers
- Distribution of profits and losses
- Convene meetings
Buyout or buy-sell guidelines which decide the protocol for if a member passes away, becomes disabled, or wants to transfer their interest
Filing Mandatory Documents with the Secretary of State: You must submit the correct documents with the Secretary of State to remain compliant with the law. Filing late may incur fees while failing to file can lead to the dissolution, or termination, of your business as a legal entity. Annual reports are one example of such documents.
Maintain Your Woodway Business From The Start With The Right Lawyer
The business Lawyers at Bountiful Law focus on the legal requirements of your business so you can focus on building your business. Call today to schedule a consultation nearby Woodway, WA at 425-775-9700.