When forming a new business, one of the most important decisions to make is choosing the right type of business entity. The process can be shortened and the appropriate type of legal entity can be quickly selected with the assistance of our credible Houston business structure attorneys at GK Law PLLC.
Our legal team will advise you on your options and take all the steps necessary to establish your company as a legal business entity. Call us now and schedule an initial consultation with our top-ranking Texas business law attorneys to get started with your business formation.
Choosing and implementing the right corporate structure for your business is critical to its success. If you are planning on starting your own business, you need a qualified Houston business structure attorney on your side who can handle all the legal matters on your behalf.
At GK Law PLLC, we have extensive experience representing the interests of existing and emerging businesses in Houston, TX. We want to ensure your corporate structure protects your business without unnecessary burdens. Regardless of the entity structure you choose, our business law firm can help:
We’ll guide you about the differences between these business entity types and help you choose the one that’s right for you. Contact our law office now and schedule an initial consultation with our skilled Houston TX business law attorneys.
A business legal structure, also known as a business entity, is a government classification that regulates certain aspects of your business. When setting up a business, choosing the appropriate structure enables your venture to be legally acknowledged.
The business structure states who owns the company, how its profits are distributed, and which managers perform what tasks. In making this decision, it is important to seek legal advice from our competent Houston business structure attorney, as the structure chosen will have long-term implications on a business.
The major differences among business structures include:
There are several types of legal structures for you to choose from. Each structure has different advantages and disadvantages. With the multitude of different types of legal entities to choose from, the selection of what business entity structure is right for each client can be a very time-consuming and challenging.
A knowledgeable Houston business legal structure attorney identifies objectives and liabilities to pick the best structure for your needs and goals. The following are the recognized business structures in the State of Texas:
The majority of small businesses start as sole proprietorships. As soon as you begin operating your business on your own, the government considers you a sole proprietor. This is the most common type of small business in the state of Texas and the easiest type of business to form. In a sole proprietorship, a single individual is engaging in business activity without the assistance of a formal organization.
Sole proprietors receive all income generated by the business to keep or reinvest. However, they have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk.
A partnership involves two or more people engaging in business for profit and does not have formal filing requirements. Some states provide the option of forming a general partnership, limited partnership (LP), or a limited liability partnership (LLP).
To avoid disputes between partners, it is best to have a partnership agreement that specifies the terms and conditions of the arrangement, such as how the partners will share profits and losses. The partners should have a legal agreement that would formalize the rules for the following:
A limited liability company (LLC) is a very common business structure for independent contractors. It combines a corporation and a partnership, giving it structural flexibility and favorable tax treatment. Owners of LLCs are called members. These members can include individuals, corporations, foreign entities, and other LLCs.
The main advantage of an LLC is that the members are protected from personal liability for business claims and debts. For tax purposes, an LLC is considered a pass-through entity. This means the income and profit from the business pass through the business to each member of the LLC.
What sets the corporation apart from all other types of businesses is that a corporation is an independent legal and tax entity. It is separate from the people who own, control and manage it. It is created by filing a certificate of formation with the Texas Secretary of State. The owners of a corporation are its shareholders. The shareholders elect a board of directors to manage the major policies and decisions.
If you want to structure your business as a corporation, you might have several options in your state, such as a C Corp, S Corp, Close Corporation, and a nonprofit corporation. The corporate structure is usually created when you wish to offer employees stock options as part of the recruitment process or need to attract investment capital. Corporation benefits include limited personal liability, continued existence despite the death of owners, and tax advantages. Forming a corporation may be attractive when you wish to reduce tax liability.
The choice of business entity is an extremely important decision that can significantly impact the overall success of a business venture. Before making any final decision, it is crucial to form your business and discuss your legal options with our seasoned Houston business structure lawyers at GK Law PLLC.
Our business law firm diligently walks clients through the entire process of corporate formation, ensuring compliance each step of the way. We design our business formation services to prevent future disputes or litigation from arising whenever possible.
We know how to help you choose the business entity formation that is best for you. Contact us now and schedule an initial consultation with our experienced Texas business law attorneys to ensure that your business is properly structured from the beginning.