Simpsonville Startup Attorneys & Lawyers

What is a Sole Proprietorship?

A sole proprietorship is a business with a single owner. It is the dream for many people. These businesses, which are not registered as an LLC (limited liability company), a partnership, or a corporation, have the benefit of flexibility. Sole proprietors can work as freelancers — independent contractors — or they can run physical, on-the-ground businesses. 

Often, home-based businesses are sole proprietorships. There are 23 million of these in operation today, vastly more than any other traditional forms. This sort of business carries

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Starting a business can be exciting and rewarding, but can also be complicated and nerve wracking. Your first order of business will be to decide on an entity type. Common entity types include, sole proprietorships, partnerships, corporations, DBAs and limited liability companies (LLCs). An LLC is a legal form that is considered to exist separate from its members, protecting them from total financial exposure by limiting liability to the amount of the financial contribution made by each. The members own and manage the company unless otherwise provided for in the LLC’s

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Updated October 15, 2020:

Reverse Vesting: What Is It?

Reverse vesting occurs when a company's co-founder receives his or her shares and ownership interest upfront. This exchange is subject to vesting similar to employee stock options. If the co-founder leaves, the company may repurchase a set amount of those shares.

The founder already owns all the shares with reverse vesting and may be forced to sell a specific percentage of them for no profit if the complete vesting period hasn't been finished. Reverse vesting is a term used to define a specific situation where an independent contractor or an employee gets stock that's subject for the company to repurchase at-cost. The right to repurchase lapses the vesting period.

This is the opposite of a normal situation, where a provider for a service gets the right to buy stock or an o

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Updated October 16, 2020: 

LLC Versus C Corp: What Is It?

An LLC is a business entity that is legally separate from its owners, who are known as "members." An LLC can have one member or many members.

A C Corporation refers to any corporation taxed separately from its owners. Unlike S Corporations, taxing of C Corporations occurs twice, once on the earnings and again on the salaries of the owners.

Similarities of an LLC and an S Corp

LLCs and S Corps have several similarities:

• Limited liability protection. In both an LLC and an S Corp, owners are not personally responsible for business debts or liabilities.

• Sepa

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PLLC: What Is It?

A PLLC is a Professional Limited Liability Company that exists in some state -- it is a limited liability company specifically designed for licensed professionals, such as doctors, lawyers, engineers, accountants and members of other professions.  Only licensed professionals generally can form PLLC’s, and the services that constitute professional services vary from state to state. Call your state licensing board to confirm.  PLLC’s must be organized to only provide the services of the licensed professionals.

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