Helping Businesses Succeed

At the law firm of Lynch & Eatman, L.L.P., our Raleigh attorneys advise and represent the owners of both large and small businesses, with a particular focus on closely held companies. We handle a wide range of business and financing issues.

Whether you are starting a new business, establishing a joint venture with another company, entering into a contractual relationship or encountering any challenges in the organization or operation of your business, our experienced North Carolina lawyers can help.

Establishing and Maintaining Businesses and Professional Practices

Our attorneys have substantial experience in the creation and representation of companies engaged in all facets of the real estate investment and development industry, the restaurant and hospitality industry, the communications industry and other industries active locally.

If you are starting a business or professional practice, we can help you select the appropriate business entity for your circumstances and objectives. Common entities include the following:

• Limited liability companies (LLCs)
• Limited partnerships
• Subchapter C corporations
• Subchapter S corporations
• Professional associations
• Professional limited liability companies (PLLCs)

Understanding Business Entities

At Lynch & Eatman, L.L.P. we provide comprehensive legal services for businesses of all sizes and structures. Our attorneys are well-versed in the intricacies of various business entities and can guide you through choosing and establishing the proper structure for your company.

Below are the characteristics of several common business structures:

Limited Liability Companies (LLCs)

An LLC is a flexible business structure that combines elements of partnerships and corporations. It offers personal asset protection for owners (called members) while allowing for pass-through taxation. LLCs are popular among small businesses due to their simplicity and liability protection.

Limited Partnerships

Limited partnerships are structured with two types of partners: general partners who actively manage business operations and limited partners who provide capital but do not participate in day-to-day management decisions. This arrangement allows for a clear division of roles and responsibilities within the partnership. This structure is often used in real estate investments and venture capital firms, providing liability protection for limited partners.

Subchapter C Corporations

C corporations are separate legal entities owned by shareholders. They offer the strongest protection from personal liability but are subject to double taxation – once at the corporate level and again when dividends are distributed to shareholders. C corporations are suitable for businesses planning to go public or seek significant outside investment.

Subchapter S Corporations

S corporations are similar to C corporations in structure but enjoy pass-through taxation like LLCs. They have restrictions on the number and type of shareholders. S corporations can be advantageous for small businesses looking to minimize self-employment taxes while maintaining corporate benefits.

Professional Associations

Professional associations are specialized entities for licensed professionals such as doctors, lawyers and accountants. They offer liability protection while allowing professionals to practice their trade within a corporate structure that complies with state regulations.

Professional Limited Liability Companies (PLLCs)

PLLCs combine the benefits of LLCs with the specialized structure required for licensed professionals. They provide liability protection for the company’s debts while holding individual professionals accountable for their actions.

Understanding the various business entity types is crucial for entrepreneurs and established companies.

Frequently Asked Questions

What are the steps to incorporate a business in North Carolina?

Incorporating a business in North Carolina involves several key steps:

• Choosing a unique business name and checking its availability
• Filing Articles of Incorporation with the North Carolina Secretary of State
• Paying the required filing fee
• Creating corporate bylaws
• Holding an initial board of directors meeting
• Obtaining necessary business licenses and permits
• Applying for an Employer Identification Number (EIN) from the IRS
• Opening a business bank account

It is advisable to consult with an attorney to ensure all legal requirements are met and to guide you through the incorporation process specific to North Carolina.

What are the ongoing compliance requirements for North Carolina businesses?

North Carolina businesses must maintain compliance with various state and federal regulations:

• File annual reports with the Secretary of State
• Pay state and federal taxes, including corporate income tax and employment taxes
• Maintain accurate financial records and corporate minutes
• Renew business licenses and permits as required
• File biennial reports for LLCs
• Hold regular shareholder and board meetings (for corporations)
• Comply with industry-specific regulations and standards

At Lynch & Eatman, L.L.P., we are committed to helping you navigate the complexities of business formation and compliance. Our attorneys can provide personalized guidance to ensure your business entity is properly established and maintained by North Carolina law. Whether you are starting a new venture or managing an established company, we are here to support your business’s legal needs.

If you are not the sole owner of your business, we can help you protect your rights through the negotiation and drafting of an effective shareholder, operating or partnership agreement.

Once your business has been established, we can advise you on a range of issues relevant to the continued operation of the business. We also have substantial experience in representing clients with business purchase and sale transactions.

Contact Us Today; We Can Help

Experienced legal counsel and representation can play a crucial role in the successful establishment and operation of a business. To discuss how our attorneys at Lynch & Eatman, L.L.P., can assist you, please contact us at 919-944-4655 or by email.