Damrell, Nelson, Schrimp, Pallios, & Silva is a full service Modesto business law firm providing advice and representation to entrepreneurs and businesses throughout California. We are equally adept at handling business transactions and litigation, and are known as one of the leading trial firms in Stanislaus County. Here, we provide answers to some frequently asked questions posed to Modesto business attorneys.
Among attorneys in Modesto, CA, our business lawyers handle especially complex commercial matters for Central Valley industries, including agribusinesses, cattle farms, vineyards, and wineries. For more information about our business transactions and business litigation practice group, please contact the Damrell firm to schedule a consultation.
Frequently Asked Questions for a Northern California Business Attorney
What types of businesses operate in California?
In California, some of the most common types of businesses include C corporations, S corporations, limited liability companies (LLCs), limited liability partnerships (LLPs), limited partnerships (LPs), general partnerships, and sole proprietorships. There are unique liability and tax issues, ownership concerns, and state and federal regulatory obligations that pertain to each type of business entity, and must be considered when choosing a corporate form. Our Modesto business law attorneys help clients assess business needs and select the right type of entity for a particular business venture.
What is the difference between a corporation and an LLC?
Many entrepreneurs come to our Modesto business lawyers to ensure they choose the right type of corporate entity and organizational structure for a new business. Often, they are deciding whether to establish their business as a corporation or limited liability company (LLC). Both corporations and LLCs shield business owners and shareholders from debts incurred by the business, as well as from lawsuits brought against the business. Corporations and LLCs are different, however, in how they are taxed.
Corporations are considered separate business entities that exist separately from their owners, meaning a corporation’s profits are taxable to the corporation.
On the other hand, LLCs are pass-through businesses, which means business owners may be taxed based on their adjusted gross income (AGI), including company profits. An experienced Modesto business law attorney at the Damrell firm can further explain the distinctions, advantages, and disadvantages of choosing one corporate form over the other.
What is a buy-sell agreement?
Buy-sell agreements are contracts between the shareholders of a corporation that provide for an orderly succession of stock ownership if one or more shareholders leaves the corporation or becomes unable to perform his or her duties.
Corporations with two or more shareholders should consider entering into a buy-sell agreement, as a shareholder’s termination, death, divorce, or unexpected disability can cause serious operability issues for the remaining shareholders and for the corporation as a whole. The Modesto business lawyers at the Damrell firm have helped many corporations draft and implement effective buy-sell agreements as part of the business organization process.