When starting your new business in the United States, deciding whether or not to incorporate is one of the most crucial choices you will have to make. As with any legal structure, corporations have certain advantages and disadvantages. Having credible Houston corporate law attorneys on your side can be beneficial in helping you decide by analyzing the nature and needs of your business.
At GK Law PLLC, our legal team can help you assess whether incorporating is the best option for your business. Contact our law office now and schedule an initial consultation with our qualified Texas business attorneys to learn more about the incorporation process.
As a business owner, deciding which corporate structure fits your company's needs is critical. Texas corporate business law can be challenging to navigate on your own. Therefore, seeking legal advice from our trusted Houston corporate lawyer is highly recommended. They can guide you through the incorporation process and ensure that you have taken all necessary steps to protect your assets and avoid future problems.
At GK Law PLLC, our law firm can:
Our business law firm has over a decade of extensive experience advising business owners on Texas corporate law and helping them understand the advantages and disadvantages of all options. Contact our law office and schedule an initial consultation to discuss your situation now!
A corporation is a form of business ownership that helps prevent personal liability for business debts. It is a distinct legal business entity, meaning the business owns the property, pays taxes, and enters into contracts separate from its owners. The corporate structure is often created when you need to attract investment capital or wish to offer employees stock options as part of the recruitment process.
The owners of a corporation are shareholders (also known as stockholders) who obtain an interest in the business by purchasing shares of stock. Shareholders elect a board of directors responsible for managing the corporation. Whether it is to save money on taxes, attract investors, protect yourself, or boost reputability, starting a corporation with the help of our competent Houston corporate lawyer might be the best next step for you and the business.
There are many ways to legally structure a business as a corporation, depending on the type, scale, and business scope. Each corporation type offers its unique advantages and disadvantages. The type of corporation you choose affects everything from tax status to the myriad ways you can be brought into court.
A corporation can be formed as a for-profit or a not-for-profit entity. For-profit entities are formed to generate revenues and provide a return to their shareholders according to their ownership percentage in the corporation. Not-for-profit entities operate under charitable organizations dedicated to scientific, religious, educational, or research purposes. A top-ranking Houston corporate law attorney can help you determine the most appropriate type of corporation that will help accomplish your business goals.
A C corporation is a traditional corporate business formation. Because a C corporation is a separate legal entity, the debts and liabilities of the business are separated from the liabilities of the directors, investors, and shareholders. This means that the owners are not personally liable for the business's obligations, and their assets will not be at risk.
C corporations are typically much more attractive to potential investors, like venture capitalists and shareholders, because this business structure allows for wider corporation ownership. However, C Corporations can cost more maintenance than limited liability companies (LLCs), S Corps, or sole proprietorships. In addition, owners receive profits and are taxed at the individual level, while the corporation is taxed as a business entity, creating a double taxation situation.
S corporation is created the same way as a C corporation but is distinct in business owner limitation and tax purposes. It is a special tax status granted by the IRS (Internal Revenue Service) that lets corporations pass their corporate income, credits, and deductions to their shareholders.
An S corporation comprises up to 100 shareholders and is not taxed separately. Instead, the shareholders shoulder the profits and losses on their income tax returns.
A non-profit corporation has a separate existence. It can enter into its contracts, sue, and be sued in its name and is responsible for its contractual and other obligations. It is formed to carry out charitable, educational, religious, or other activities for the public benefit. Non-profit corporations can apply for both federal and state tax-exempt status.
When you incorporate a business, you are setting it up to operate as a separate entity with legal rights recognized by the state. Texas corporation law defines how a business must be formed and maintained to receive benefits associated with specific legal business entities. Our knowledgeable Houston corporate law attorneys can help you understand the process of corporate business formation.
To form a corporation, you must take these essential steps:
Choosing which type of legal entity best fits your needs is one of the most crucial steps when forming or growing your business. The type of legal structure you choose for your business will play a significant role in your success. Forming a corporation for your Texas business is a decision that should consider the issues of taxes, liability, management, transferability of ownership interests, and formality of operation.
Texas corporate law can be complex and confusing. To learn more about how a corporation can protect you and your business, our experienced Houston business attorney at GK Law PLLC can help you weigh the options and take the correct steps to set up your new business in full compliance with the state law. We can help you generate and file the appropriate paperwork, form company agreements or bylaws, and identify any regulatory requirements needed for your specific business.
Our business law firm will take the time to learn the details of your business operation and your short and long-term goals so that we can identify and implement the appropriate legal measures to keep your company strong and moving forward. Call us now and schedule an initial consultation with our skilled Houston business lawyer. We provide our legal service to numerous clients in Greater Houston and surrounding areas.