How do I create a small business entity?

Creating a small business entity in Virginia requires planning and due diligence in order to ensure compliance with state and federal laws. The type of entity you form will depend on the size and nature of your business. The two most common types of entities for small businesses in Virginia are Limited Liability Company (LLC) and Corporation. An LLC is a business structure that combines the limited liability of a corporation with the pass-through taxation of a partnership or sole proprietorship. It offers personal asset protection and flexibility in management structure. A Corporation is a business structure that separates the owners from the business. It is a separate legal entity and has limited liability protection for its owners. To form an LLC or a Corporation in Virginia, you must file the appropriate paperwork and pay the filing fee with the State Corporation Commission. The documents required to form an LLC are the Articles of Organization and the Operating Agreement. The documents required to form a Corporation are the Articles of Incorporation and the Bylaws. Both LLCs and Corporations must also obtain a Certificate of Registration from the State Tax Commissioner. In addition to these requirements, you may need to obtain applicable licenses, permits and zoning approvals. It is also important to establish a corporate record keeping system to maintain accurate records of all corporate proceedings, including annual Minutes, financial statements, and any other corporate documents. Finally, you should consult with an experienced small business lawyer to ensure that your business formation is properly structured to protect your interests.

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How do I create a small business entity?

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