Business Law:
Business Management Structure
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Business Management Structures
There are a few different types of business structures. Each business structure offers certain advantages and disadvantages in legal control, taxes, and liability. If you are creating a business, be familiar with the advantages and disadvantages of the entity you are utilizing.
Sole Proprietorships
Also known as Sole Traders. Sole proprietorships consist of ownership by an individual party, which takes on all the risks of business, including debt and legal liability. If any problems arise, the sole proprietor will be held responsible. There is no legal distinction between the sole proprietor and the business the proprietor owns. However, the sole proprietor also maintains full control over the business and takes in all the profit after expenses.
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CORPORATIONS
A corporation is a legal entity distinct and apart from the corporation’s owners, referred to as shareholders and managers, known as directors and officers. A corporation may enter into contracts, sell and buy property, and be sued. Corporations can only be created by state statute and to form a corporation, strict guidelines must be adhered. The guidelines are defined by each state’s statutes that cover corporate governance. The shareholders (owners) of a corporation are not responsible (in most instances) for corporate debt. Corporations can be divided into two types: C corporations and S corporations. The main distinction between the two types is that C corporations are taxed separately from their owners while S corporations are not. Instead, the owners pay for the corporation’s taxes on an individual basis. S corporations are subject to eligibility requirements which C corporations are exempt from. Such requirements include, but are not limited to, the number of shareholders, the class of stock and the residency status of the shareholders.
Mr. Chico also served the U.S. Navy for 10 years, service for which he holds immense pride and forms the source of tenacity that is associated with the firm.
Not only is the law firm based in Celebration, Florida, Mr. Chico calls Celebration home and enjoys community involvement. He is actively involved with the Celebration Rotary Club and is a member of the advisory committee for the Celebration, Foundation.
Focus of Mr. Chico’s practice involves complex civil litigation, including contract, real estate, business and shareholder disputes. Additionally, the firm is devoted to debt collection and foreclosure defense litigation, as well as handling appeals in both Florida and Federal Courts. He is admitted to the bar for the Florida Supreme Court, the Middle District of Florida Federal Court and the United States Court of Appeals for the Federal Eleventh Circuit.
