[kc_heading_pac_6_pre_headline_1 size=”35″ color=”#0000″ ]Virginia Business Law for Small Business Owners: Entity Formation, Websites, Social Media, and Online Advertising Law[/kc_heading_pac_6_pre_headline_1]
If you are starting a business, you are probably aware of the need to, at the very least, assess whether it makes the most sense to exist as a particular business entity. Some of the most common entity types are: the Limited Liability Company, the S Corporation, the C Corporation, the Professional Limited Liability Company, and the limited liability version of a partnership. With an attorney experienced in business formation and entity selection, you can ensure your choice is the best entity structure for your business and financial situation.
For many people forming a business, limitation of liability is a major reason for forming a corporation or limited liability entity.
Think of it this way: a business becomes an entity (like a person) with its own debts and liabilities. “Liabilities” exist in many forms. But if a business is operated as a sole proprietorship (meaning, it is not separate from the person running the show), then the liability risk is much great.
For example, imagine if someone opened a day care facility. One day, spilled water caused a fall and a broken bone. If the day care business is a limited liability entity, then that means the owner of the day care facility could not be sued (absent other facts) generally speaking. The company would be the proper party to sue.
Yes, it is possible. The concept known is “piercing the corporate veil” is a way in which those harmed by businesses operating under the guise of limited liability protection harm people, but are not really and truly operated as separate entities. Reasons for holding the owners liable and thus, piercing the veil, include gross under-capitalization of the business, commingling of personal and business funds/ accounts, and fraud (among other things).
Yes. Depending on the form of your business and the type of entity you want to restructure as, there could be important taxation and employment law-related issues.
Every website that is a means of advertising a business’ services or products should include the following sections: (speak with your Northern Virginia Business Law Firm today for document preparation)
– Terms of Service and Conditions for Use (all businesses)
– Anti-Spam Policy (most businesses)
– DCMA Compliance (some businesses)
– Social Media Disclosure (some businesses)
– Copyright Notice (most or all businesses)
– FTC Statement (some businesses)
Yes. In today’s always-changing world of social media, new forms of communication are coming out all the time. To protect your business from claims made regarding what you or others have posted, linked to, or referenced on social media, a very specific type of legal form can be used on the business website and linked to via the social media accounts. The basic principle is to disclose to all visitors that as a user of your website and a visitor of your social media profile(s), they understand anything may be posted by other users, and any liability based on such posts, uploads, updates, etc., is disclaimed. The Vincenzes Law Firm refers to this specific document as the Social Media Disclosure Page.
Based on the answer to the previous question, a Social Media Disclosure Page should be utilized at the very least. In addition, various industry-specific disclaimers may be necessary to comply with the rules applicable to the particular business.
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