Basics of LLCs

Posted on : December 18, 2014

If you are considering creating an LLC, an Arlington business attorney can explain the legal consequences of this choice. Here are a few concepts that you should be familiar with.

Ownership

LLC owners are referred to as members. The LLC provides complete freedom to members to distribute ownership rights to the LLC without having to consider how much capital contribution a member makes.

Distributions

Members can receive periodic distributions as outlined by the operating agreement. The operating agreement may provide for certain members to receive a higher amount of the distribution, or it may provide that all members get an equal share.

Taxation

One of the more complicated aspects of LLCs that an Arlington business lawyer may explain is the issue of taxation. An LLC may choose to be taxed like a sole proprietorship or like a corporation. If it is taxed as a corporation, only salaries are subject to these taxes. If taxed as a sole proprietorship, salaries and profits are taxed. The default classification is to treat the LLC as a single taxation. The distributions are subject to employment tax. However, LLC members who actively participate in the business can deduct their operating losses against their ordinary income.

Operations

An Arlington business attorney can explain that LLCs do not have to comply with the same type of operations as corporations, such as holding regular meetings or keeping corporate minutes.

If you would like more information about establishing an LLC, contact Paul S. Schleifman by calling (703) 528-1021.

Can I Recover My Attorney Fees?

Posted on : December 11, 2014

One of the common questions that an Arlington civil litigation attorney is accustomed to hearing is whether a plaintiff is entitled to recover the attorney fees that he or she incurred in pursuit of a case. Your Arlington civil litigation lawyer can explain that each party is generally required to provide for his or her own legal fees. Additionally, he or she can explain the following guidelines.

Statute

Depending on the type of case, your Arlington civil litigation attorney can inform you whether there is a statute that is applicable to our case that would allow you to recover attorney fees. Generally speaking, there is a specific public policy that supports the notion of giving the plaintiff or prevailing party his or her attorney fees. If the public interest is served by allowing the plaintiff to recover his or her attorney fees, a statute may be in existence.

Contractual Agreements

Another instance where your Arlington civil litigation attorney can explain that allows for your attorney fees is if they are provided in a contract between you and the defendant. The contract must be directly related to the lawsuit and the provision regarding attorney fees should be clear.

Pleadings

In order to recover your attorney fees, your attorney must usually include a request for attorney fees in your complaint and subsequent pleadings, otherwise he or she may waive your right to this recovery.

If you would like to know whether you may be able to recover attorney fees, contact E. Schleifman by calling (703) 528-1021.

How to Remedy a Breach of Contract

Posted on : December 4, 2014

When one party breaches a contract, there are typically two kinds of remedies available to the party who did not breach the contract. One kind is legal remedies and the other is equitable remedies, says an Arlington breach of contract attorney.

Equitable remedies include reformation, specific performance and rescission.

Reformation

A valid contract might be modified so that it reflects the party’s intentions more accurately.

Specific Performance

This kind of remedy is obtained by court order and mandates that the party who breached the contract fulfill the contract the way that it was written. This is a rare type of remedy, but there are circumstances in which it may be the most appropriate remedy. For instance, if the breaching party is a crafts-person with a unique skillset or a specific piece of real-estate.

Rescission

The non-breaching party can cancel his or her contractual obligations. This remedy might be appropriate if the contract was fraudulent or based on a mistake made by one or more parties.

Most legal remedies are monetary settlements or damages that are intended to compensate the non-breaching party, according to an Arlington breach of contract attorney.

Liquidation Damages

Specific damages are sometimes pre-determined within a contract. These pre-determined damages are known as liquidated damages.

Punitive Damages

In the event that a party acted in a fraudulent or malicious matter in connection with a contract, he or she may be subject to punitive damages.

Compensatory Damages

This form of damages is meant to compensate the non-breaching party for the contract breach. These damages may take the form of consequential damages and expectation damages. Consequential damages refer to indirect costs associated with the breach.

Legal representation

If you have suffered a financial loss as the result of a contract breach, you may wish to speak with an Arlington breach of contract lawyer. Please call the office of E. Schleifman at 703-528-1021 to schedule a consultation.

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