Start Your Business On The Right Track
Forming a business is a big decision that involves a lot of careful planning and detailed analysis. At Zollie C. Steakley, PLLC, our attorney has been helping entrepreneurs and business owners make the right decisions so they have the best chance to succeed. This includes selecting the appropriate entity under which a company should do business.
We look forward to being an integral part of your business’ success.
Different Types Of Business Entities
Our Texas business creation attorney has experience advising clients during the initial phases of forming a company. We have been providing this service since 1976 and have gone on to watch numerous clients enjoy success in their business endeavors.
Selecting the appropriate entity is an important aspect of forming a business. Depending on your situation, several options might be available to you. They include:
- Sole proprietorship: Most American businesses are formed as a sole proprietorship. They provide a business owner with flexibility and involve lower start-up costs. However, the business itself is unable to own property as all assets are considered the personal property of the business owner.
- General partnership: If you and a colleague (or several colleagues) wish to be co-owners, then you might consider forming a partnership. You and your partners will share in the profits and losses of the company, as well as any tax burdens or additional benefits. Like sole proprietorships, the company itself is not considered the owner of company assets — they are co-owned as personal property of the partners.
- Corporation: A corporation is a business entity that is created by filing Articles of Incorporation and is governed by a board of directors. Additional considerations must be discussed, including whether you should create a “C-” corporation or an “S-” corporation, as there could be tax implications. Individuals are not personally liable for corporate debts as the corporation is deemed the owner of all assets and liabilities.
- Limited liability company (LLC) and limited liability partnership (LLP): LLCs are created only under state law and allow for one business owner or multiple members to run the company. Depending on your situation, the company may be treated as a corporation, partnership or as a disregarded entity by the IRS for tax purposes. LLPs are also created exclusively under state law and are treated almost the same as general partnerships. The difference between the two is that owners of an LLP receive limited liability protection for the company’s debts.
Schedule A Time To Speak
To learn more about our services or to schedule your initial consultation, please contact our Texas business law office online today.