FORMS OF BUSINESS IN VIRGINIA STATE

            Virginia State has Limited liability form of business. To form such a business there are requirements that are supposed to be meet. There are reasons as to why members or owners may want to form such a corporation mostly because of limited liability and its life. The process of forming one involves picking a name that will not infringe the trademark of another. Preparing the articles with the Virginia state corporation commission. Nominating a registered agent of Limited Liability Company. An operation agreement must be drafted before operation kicks off. Having meetings and preparing minutes must also be done alongside obtaining Employer Identification Number (Martin, 2011). The whole process is done carefully because the life of such a corporation is not limited by the state. The operating agreement of the company dictates whether the organization will continue with its operation perpetually or whether it will be dissolved upon completion of its project or at a specified time. It is dissolved and its operation wound up at a given time or upon the occurrence of an event in the articles or operating agreement (Martin, 2011).

Limited Liability Partnership is another form of business. In Virginia state the limited liability partnership is formed a registration statement is filed with the Virginia state corporation. Its life is determined by the partners in the partnership and the trend of business (Martin, 2011). The profits realized will contribute to the continuity of the business. This is because if there are constant losses then the partners will be unwilling to eject their funds into the project. This is determined by the profit and loss sharing ratios. Malpractices, partner’s negligence, and partners determination affects the life of the business (Martin, 2011).

 

Reference

Martin, A. R. (2011). Limited Liability Company & partnership answer book. Austin [Tex.: Wolters Kluwer Law & Business.