Should My Business Be an LLC or an S Corporation?

With unemployment and economic woe on the rise more people are putting their own shingle out by starting their own small business in an attempt to alleviate the financial burden.  Many individuals choosing to blaze this path are confronted with some difficult decisions.  One of the first decisions involves selecting the appropriate legal structure for their new business.  Among the choices available to new business owners, the most popular legal structures include the limited liability company (or LLC), and the S corporation.

So what is an LLC and how is it different from the S corporation?  An LLC is an unincorporated association whose owners cannot be held personally liable for the debts of the company.  It operates to protect the owner’s personal assets from the LLC’s creditors.  Similarly, corporations including S corporations also endow upon its owners a “corporate veil” that acts like a shield, guarding the personal assets of its owners called shareholders from the liabilities and debts of the corporation.  In addition, the LLC and S corporations alike receive preferential tax treatment when compared to other legal structures.  The reason for this is that the two entities are both treated as “pass-through” tax entities.

The LLC is different from the S corporation in that the formalities required to create and maintain the entity are generally less cumbersome.  Flexibility is the key advantage that the LLC holds over the S corporation.  The S corporation requires a lot more oversight.  There are strict record keeping and reporting requirements, restrictions on ownership and management, and even distributions of profits are subject to limitation.  The LLC however is free from many of the limitations and restrictions that encumber the S corporation.  There are fewer record keeping and reporting requirements, operational control is flexible in that it can be member managed or manager managed.  Ownership and profit sharing is also much more flexible because unlike an LLC, S corporations like any other corporation, require that profits are distributed in proportion to stock ownership.

The bottom line is that you must be aware of the specific situation and circumstances that affect your particular business.  An LLC or S corporation may be the right choice for your company and it may not.  There is no such thing as “one size fits all” in selecting the appropriate legal structure for your company.  Either an accountant or an attorney can assist you in choosing the right structure for your business.

If you have any questions concerning the LLC or S corporation, feel free to contact us, and talk to one of our outstanding attorneys like Bettina Altizer.  The Law Firm of Altizer & Altizer is located at 324 Washington Ave., Roanoke, VA 24016. We are honest, diligent, and competent, Virginia lawyers proudly serving all of Southwest Virginia, including Roanoke, Salem, Christiansburg, Blacksburg, Martinsville, Lynchburg, Lexington, Covington, and Clifton Forge and Botetourt County, Montgomery County, Giles County, Franklin County, Pulaski County, Floyd County, Bedford County and all surrounding communities.  Our Firm handles personal injury, medical malpractice, automobile accidents, civil cases, family law, and business law.

Be Proactive About Your Healthcare — You Can Help to Avoid Medical Malpractice and Injury

We rely on our doctors to take good care of us and to monitor and manage our healthcare.  They generally do a wonderful job for us, and we depend on them in many ways.  But we also bear a responsibility to be proactive about our healthcare.  That is why it is so important that you make sure to obtain the results of all laboratory and pathology tests and radiological examinations that you undergo.

And as a medical malpractice attorney who has seen many horror stories over the years, it is best to be an advocate for yourself and not depend totally on your healthcare providers.  By being proactive, you actually assist your healthcare providers in doing a better job in taking care of you.  Do not wait for them to make a mistake or to allow a condition to continue without notifying your healthcare provider.  Ask plenty of questions and do not procrastinate in making  your concerns known.

In a study reported in The Archives of Internal Medicine, researchers studying the office procedures of primary care physicians found evidence that more than seven percent of clinically significant findings were never reported to the patient.  This should tell you that if you have blood work drawn, you have a mammogram, you have a chest x-ray, you have a colonoscopy – you must follow-up with your doctor several weeks following the procedure if you have not received the results of those tests.  And we all know why.  Some cancers are slow growing while others are aggressive.  As a result, timely diagnosis can mean the difference between successful treatment and Stage IV cancer.

Just because you do not hear back from your doctor about recent test results does not mean that “no news is good news.”  Be proactive and involved in your healthcare.  It’s your responsibility, too!

Altizer & Altizer: Your Legal Team for Southwest Virginia

You know, from visting our website, that our attorneys, Bettina C. Altizer and Jack Vernon Altizer, handle car accident cases and medical malpractice cases, to name a few personal injury areas of the law, for Roanoke and the surrounding areas.  But we also serve clients in Bedford, Smith Mountain Lake, Lynchburg, Covington, Harrisonburg, Rocky Mount, Martinsville, Botetourt County, Blacksburg, and all areas surronding the Roanoke Valley.  Keep us in mind if you need a personal injury lawyer to serve you and  your family and friends.  You can contact Altizer & Altizer at (540)345-2000 or toll free at (800)310-5777.

Personal Injury Clients: Maintain a Diary; It’s Important!

Maintain a Diary

             It is very important to maintain a diary of the events surrounding your injuries from an automobile collision.  Over time, you may not remember some of the minor details that may be beneficial information at trial.  Having a diary to refresh your memory and memorialize your pain and suffering is a valuable tool.  These events include:

             Facts of the Collision – just to name a few, the date, time, and location of the accident, how the accident occurred, who was present at the scene, the weather, the colors of the vehicles involved, what was said and by whom, who was injured and how, the amount of property damage to all vehicles, and the names and addresses of all witnesses.

             Your Medical Treatment – you need to write down every injury, log all dates and times of your hospitalizations, doctor’s appointments, and other medical treatment or testing.

              Your Lost Wages – write down the date and numbers of hours you missed from work because you were unable to work or because you had a doctor’s appointment.

              Pain and Suffering – record the dates and times of all of your aches and pains, how the injury has affected your life with regard to activities you no longer enjoy, what duties you no longer can perform at work or at home, and how your relationships with family and friends have changed.

Your Legal Health Checklist

YOUR PERSONAL LEGAL HEALTH CHECKLIST

BASIC LEGAL DOCUMENTS THAT YOU NEED:

1. DO YOU HAVE AN UPDATED WILL?  (WITHIN THE LAST 5 YEARS)

2. DO YOU HAVE AN ADVANCED MEDICAL DIRECTIVE?  IS IT UPDATED?

3. DO YOU HAVE A POWER OF ATTORNEY?  IS IT UPDATED?

INSURANCE CHECKLIST:

1. IS YOUR AUTO INSURANCE SUFFICIENT TO COVER YOUR FAMILY?  WHAT IS YOUR UM/UIM COVERAGE AMOUNT?  IF YOU DON’T KNOW THE ANSWER TO THIS   QUESTION, YOU CANNOT ANSWER THE FIRST QUESTION, AND YOU MUST SEEK ADVICE FROM A PROFESSIONAL. 

2. IS YOUR HOMEOWNER’S/RENTER’S POLICY SUFFICIENT TO COVER YOUR FAMILY?

3. DO YOU HAVE UMBRELLA INSURANCE?  IF NOT, WHY NOT?

4. DO YOU HAVE YOUR VALUABLES DOCUMENTED BY PHOTO, VIDEO, AND/OR APPRAISAL?  ARE YOU VALUABLES INSURED?  DO YOU HAVE RIDERS ON YOUR INSURANCE TO COVER YOUR DIAMOND RING, AS AN EXAMPLE?

BASIC LEGAL AND BUSINESS PRACTICES:

1. IS IT YOUR PRACTICE TO ENTER INTO WRITTEN DOCUMENTS WHEN YOU HIRE WORK TO DO BE DONE ON YOUR CAR/HOUSE? 

 2. DO HAVE A PRACTICE TO DOCUMENT, DOCUMENT, AND DOCUMENT?

 3. DO YOU HAVE A FILING SYSTEM AT HOME TO PRESERVE YOUR DOCUMENTATION AND YOUR FINANCIAL DOCUMENTATION?  DO YOU HAVE A FIRE PROOF SAFE?

 IDENTIFICATION THAT YOU NEED:

 1. DO YOU HAVE YOUR BIRTH CERTIFICATE?

 2. DO YOU HAVE A PASSPORT?  IF NOT, GET ONE, NO MATTER WHETHER YOU PLAN TO TRAVEL OUT OF THE COUNTRY

FINANCIALS:

 1. ARE YOU AWARE OF ALL OF YOUR FINANCES?

 2. DO YOU HAVE CONTROL OVER YOUR FINANCES?  DOES YOUR PARTNER/HUSBAND MAINTAIN CONTROL OVER YOUR FINANCES? 

 3. DO YOU KNOW WHERE ALL OF YOUR FINANCIAL DOCUMENTS ARE KEPT?

Any questions, call your attorney, financial planner, or insurance agent and make sure that you are legally protected.

 PREPARED BY:   BETTINA C. ALTIZER, ALTIZER & ALTIZER, 324 WASHINGTON AVE., ROANOKE, VA, 24016  (540)345-2000  AltizerLaw@aol.com