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.
Bettina Altizer- Attorney at Law
540-345-2000

Welcome to Terri Luzynski as part of the Altizer and Altizer Team

Terri Welch Luzynski was born in Jeffersonville, IN and raised in Louisville, KY.  She graduated, summa cum laude, from Kentucky Wesleyan College in 1981 with a B.A. in English and Political Science.  She received her J.D., with honors, from Harvard Law School in 1984.  Terri moved to Charlottesville, VA to accept a judicial clerkship with the Hon. James H. Michael, Jr. in the United States District Court for the Western District of Virginia.

            After practicing law for several years with the Charlottesville firm of Boyle & Bain, Terri established her own firm, focusing on juvenile and domestic relations law.  She also served as a Lecturer of Law/Supervising Attorney for the Family Law Clinic at the University of Virginia School of Law for ten years.  Terri was the President of the Charlottesville Area Women’s Bar Association and was recognized as one of Charlottesville’s Top 100 Volunteers in 1991 for her work with Charlottesville’s Shelter for Help in Emergency.

            Terri moved to Roanoke, VA in 2001 and practiced with Altizer & Altizer until 2003.  She then took a seven year leave of absence from the practice of law to pursue her interest in Christian Education and children and youth ministry.  Terri served two churches in the Roanoke Valley before returning to practice law with Altizer & Altizer.

Admitted:       Virginia State Bar         1986

                        U.S. District Court for the Western District of Virginia    1987

                        U.S. Court of Appeals for the Fourth Circuit                    1987

Law School:   Harvard Law School                J.D., cum laude, 1984

College:          Kentucky Wesleyan College   B.A., summa cum laude, 1981

Altizer and Altizer- Attorneys at Law

540-345-2000

The Blue Ridge Regional Crash Team

Jorge Valencia of The Roanoke Times reported on October 19, 2011, about a regional partnership allowing area police officers to apply new techniques and technology to traffic crash investigations.  The Blue Ridge Regional Crash Team provides the training to officers who in turn help other officers with their expertise or specialized equipment that is too costly for every department to own.  Officers from the Bedford Police Department consulted with peers from Lynchburg and Roanoke County Police Departments on two fatal crashes in Bedford this year.  The crash team also produces studies, one of which in 2009 identified careless driving as a leading cause of fatal car crashes involving young drivers between the ages of 15 and 20.  The team is currently studying crashes involving elderly drivers.

Bettina Altizer- Attorney at Law

Altizer and Altizer

540-345-2000

Downside to Structured Settlements

In the harsh economic reality in which we live, automobile accident victims are sometimes lured by unscrupulous companies to sell their structured settlement payments or annuities for a quick, lump-sum payout that offers only a fraction of the money to which the injured person would otherwise receive.  Sometimes you have no other choice.  But, if you are thinking about selling your future structured settlement payments or annuities, here are some things to consider:  (1) There are considerable financial consequences associated with selling your future payments; (2) you should explore all possible options before making the decision to sell your future payments; and (3) if you decide to sell, there are reputable companies you can work with.  But, do your homework.  Do not make a rash decision that could you hurt you more in the long-term that your perceived present difficulties.

Bettina Altizer- Attorney at Law

Altizer and Altizer

540-345-2000

Be Proactive with your Healthcare

In a commentary published in the Fall 2011 Edition of The Safety Report,[1] Wayne Parsons advises cancer patients not to give up.  Mr. Parsons suggests that many local oncologists are unlikely to know about the current state-of-the-art treatments being offered at some of the premier cancer treatment centers, including the Mayo Clinic, Johns Hopkins Medical Hospital, and the Anderson Cancer Center, to name a few.  When his wife was stricken with a rare form of cancer, Mr. Parsons did his own research on the internet and found cancer centers that offered treatments that were not discussed with his wife.  Mr. Parsons found that discussion forums were great sources of support and providing information about novel treatments and questions to ask physicians.  There is a wealth of information on the internet.  And while it is no substitute for the knowledge and skill of your physician, it certainly doesn’t hurt to be proactive and involved in your healthcare. 

Bettina Altizer

Attorney at Law

540-345-2000

This is a great cause- The video is a lot of fun.....

Employees of Blacksburg-based Lewis-Gale Hospital Montgomery have danced their way onto the Internet in the Pink Glove Dance competition.  They joined with Virginia Tech's marching band, the Marching Virginians, and Tech's Spirit Program to produce a three-and-a-half-minute clip set to Pink's hit song "Raise Your Glass."  LewisGale Montgomery is the only Virginia hospital among more than 130 competitors.   The clip that receives the most Facebook "likes" at PinkGloveDance.com receives $10,000 for their charity.  Lewis-Gale Montgomery chose Susan G. Komen for the Cure as its charity.  By late Thursday, Lewis-Gale Montgomery had received nearly 10,000 likes, placing it among the top five.

http://www.youtube.com/watch?v=OEdVfyt-mLw&feature=player_embedded

Bettina Altizer- Attorney at Law
540-345-2000

Do you need Collision and Comprehensive Coverage ?

Do you need collision and comprehensive coverage on your automobile insurance policy?  Collision coverage pays for property damage to your vehicle when you are at fault for the accident.  Comprehensive coverage pays for damage to your vehicle caused by an unknown party or an act of God.  Dropping these coverages if you have an older vehicle can be a pretty good way of reducing your premiums.  Before you drop the collision and comprehensive coverage to save on your automobile insurance premiums, here are a few things to consider.  Automobiles cost more these days, but they retain their value better than they did in the past.  This means that if your car is totaled or stolen, you would receive a bigger check from the insurance company.  Also, many people are “upside down” on their vehicle loans, meaning that they owe more money on the vehicle than it is worth.  An accident or theft could mean financial disaster.  You could end up needing money to buy another vehicle while still owing thousands of dollars on the one that was wrecked.  Last, if you do not have the funds to replace your vehicle, you could end up paying a higher interest rate and continue to be “upside down” on the loan for years.  Insurance companies like to advise their insureds to drop collision and comprehensive coverage.  But, if you are “upside down” on your vehicle loan or you do not have the funds to replace your vehicle if it is lost or stolen, you may want to maintain this coverage.  The attorneys at Altizer & Altizer can assist you in sorting out the intricacies of insurance coverage for your auto accident claim.  Our offices are located in Roanoke, Virginia.  But we also serve clients in Bedford, Smith Mountain Lake, Lynchburg, Covington, Harrisonburg, Rocky Mount, Martinsville, Botetourt County, Blacksburg, and all areas surrounding the Roanoke Valley.  Consult an experienced personal injury attorney if you have been injured in an automobile accident.  Call us at Altizer & Altizer at 540-345-2000 or toll free at 800-310-5777 or visit us at our website, www.AltizerLaw.com.