If you are currently operating or planning to open a business in Texas, one of your first concerns may be what form the business should take: partnership, corporation, or limited liability company (also known as an LLC). Each form of doing business has its own advantages and disadvantages. Your business attorney can advise you of the pros and cons of each and help you choose which entity is best for your circumstances.
A limited liability company (also known as an LLC) is a hybrid entity that blends he attributes of a partnership and the attributes of a corporation. For example, LLCs provide limited liability for their owners (like a corporation), while they are taxed like partnerships. The LLC, like the partnership, does not pay income taxes. The income is passed through to the business owners and taxed to them. The business owners are called members and they may be individuals or other business entities.
LLCs are authorized by Texas statutes. There are several steps needed to start an LLC. First, you must file a Certificate of Formation with the Texas Secretary of State. Second, you will need a Company Operating Agreement to determine how the limited liability company will operate. Depending on the circumstances, you may also need to file an assumed name certificate and obtain various business licenses or permits. Therefore, it's a good idea to get help from an experienced Texas business lawyer if you want to form one to ensure that all statutory requirements have been satisfied.
The decision to form an LLC in Texas involves important legal, tax, and accounting issues. Guidance from an experienced Texas LLC attorney is recommended. In Bryan-College Station, Texas, the Peterson Law Group provides the experience and expertise to assure your compliance with applicable law. Call us at 979-703-7014 to schedule a consultation.