Build Your Business on the Right Legal Foundation
Starting or transitioning a business is not just about having a great idea. It is about having the right legal foundation. At Ruddy Law Firm, we guide business owners, investors, and entrepreneurs through every stage so your business is protected today and positioned for growth tomorrow.
Corporations and LLCs Explained
Corporations
In Virginia, corporations are formed by filing Articles of Incorporation with the Virginia State Corporation Commission. Once all requirements are met, a Certificate of Incorporation is issued, officially creating the entity.
Corporations provide a formal structure through directors, officers, and shareholders. This structure makes them ideal for businesses planning to expand, raise capital, or bring in investors.
Limited Liability Companies LLCs
A Limited Liability Company offers flexibility and simplicity. LLCs can be member managed or manager managed, allowing owners to choose how the business operates day to day.
Members share in profits and losses while enjoying personal liability protection. Because of their flexible structure and simpler governance, LLCs are especially popular for small to medium sized businesses.
Why Meeting Minutes Matter
Meeting minutes are often overlooked but are critical for both corporations and LLCs.
Minutes should document approvals, decisions, and actions taken by shareholders, directors, managers, or members. This includes the initial organizational meeting as well as annual and special meetings.
Keeping accurate records supports legal compliance, strengthens liability protection, and can play an important role in tax matters.
Buying or Selling a Business Is a Process
A business transaction is not a single step. It is a structured process designed to protect both parties.
Confidentiality Agreement
This protects sensitive information shared during due diligence.
Letter of Intent
This is a non binding outline confirming both sides agree on key terms.
Purchase Agreement
This is a legally binding contract that includes conditions required before closing.
Closing
Once all conditions are satisfied, ownership officially transfers.
Asset Sale vs Stock Sale
Asset Sale
This is the most common approach. The buyer purchases specific business assets, goodwill, leases, and operations. This option is typically cleaner and involves less risk.
Stock Sale
This option is less common and more complex. The buyer acquires the entity itself, including both assets and liabilities. Without careful legal guidance, this structure can expose buyers to greater risk.
Why Work With Ruddy Law Firm
Whether you are forming a corporation, creating an LLC, or negotiating the sale of a business, each decision has long term consequences.
At Ruddy Law Firm, we provide more than documents. We provide strategic legal guidance to protect your vision, investment, and legacy.
Protect Your Business Future
Your business represents your hard work and your future. Let us help you build it, protect it, and transition it the right way.
Contact Ruddy Law Firm today to get started.
