Understanding Corporations: Definition, Role of Business Lawyers, and Services for Business in New York
A corporation is defined as a business structure where assets and liabilities are separate from the owners and shareholders3 min read
A corporation is defined as a business structure where assets and liabilities are separate from the owners and shareholders. Many business owners understand the importance of incorporating their business and the value that legal counsel can bring to their operation. However, not everyone is aware of the laws of their state or the implications of certain corporate decisions. For this reason, businesses should take the step to seek specialized counsel, such as business lawyers, when dealing with the establishment, maintenance, and operation of their business.
This article looks at the different aspects of corporations and explores the role of business lawyers for business operations in New York. All business owners who are considering the incorporation of their endeavors should review the information that follows and speak with a lawyer who understands the legal requirements and regulations within the state.
Corporations Defined: Business Structure
A corporation is a business entity that has assets and liabilities that are separate from owners and shareholders. This type of business structure allows the business to merge assets from the shareholders and operate with collective finances. While assets and liabilities are separate, owners do have a stake in the verbal and financial decisions of the business. There are two types of corporations that businesses can choose from, C corporation and S corporations.
What Is the Difference between C Corporations and S Corporations?
The primary differences between C corporations and S corporations are related to taxes and number of shareholders.
C Corporations: This business structure is subject to double taxation because the profits from the business are taxed at both the corporate level and the individual level. C corporations are also allowed to have an unlimited number of shareholders, which allows businesses to have outside investment while maintaining ownership.
S Corporations: This business structure offers the benefit of pass-through taxation. The corporation does not have its own income-tax filing; instead, the income is passed through to the shareholders and taxed on their individual returns. This helps to avoid double taxation and can decrease the amount of money owed to the government. Unlike C corporations, S corporations are limited to no more than 100 shareholders.
Role of Business Lawyers
When a business is considering incorporation, a business lawyer should be consulted to ensure the decisions made are in line with the laws and regulations of the state. Many potential business owners overlook the importance of consulting an experienced lawyer and can end up paying very serious consequences due to mistakes on paperwork or a failure to follow state laws. Business attorneys specialize in the laws associated with the incorporation and operation of businesses.
Because these laws vary from state to state, it is prudent to consult with a business lawyer who understands the legal requirements and regulations within the state of New York. To ensure compliance with corporate statutes, business owners that are located in New York should seek counsel from business lawyers that understand the laws and regulations within the state.
Services for Business in New York
When it comes to business operations in New York, business owners should seek counsel from business lawyers that understand the laws and regulations of the state. There are many options for business attorneys, but many business owners turn to online legal services, like UpCounsel, to find experienced business lawyers in New York.
UpCounsel is an online platform that provides businesses with access to qualified legal counsel without having to maintain a full-time in-house attorney or law firm. The attorneys have experience in business law and specialize in helping companies navigate the complexities that come along with the incorporation and ordinances of businesses.
Whether business owners are seeking specialist counsel or a freelance legal department, UpCounsel has an extensive network of experienced business attorneys that understand the requirements and regulations in New York. Companies ranging from small businesses to Fortune 1000 companies can count on UpCounsel to provide cost-effective legal services that are of the highest quality.
Businesses that want to gain an advantage when it comes to legal counsel for their business in New York should consider the convenience and cost-effectiveness of an online legal service like UpCounsel.
Companies that want their businesses to operate within the laws of their state should consider consulting with a business lawyer that understands the relevant regulations and ordinances in New York. Doing so will minimize the risk of violations that can result in costly fines or worse. Fortunately, businesses can take advantage of the convenience and cost-effectiveness of online legal services, like UpCounsel, that connect experienced lawyers with businesses of all sizes.