Forming a Business Entity

 

Forming a Business Entity

Once you have come up with a small business plan the next thing you should do is create your business entity. The Texas Organizations Code governs all rules on business formation in Texas. There are various different business entities a small business can form. Each has its own unique advantages and disadvantages for tax and liability purposes. Deciding which business entity is for your small business is a very important decision that carries legal implications. Make sure you speak with a small business lawyer so that they can explain to you all the possibilities. Make sure you choose the right business formation for your small business in Houston, Texas.

Things to consider when forming a Business Entity
Liability:

If your company were to be sued do you know who would be liable? Would it be your company or would it be you personally? Depending on which business entity you choose your personal assets can be at risk for problems of the business. It’s important to select the correct business entity that protects and separates your assets and your personal liability. Our experienced small business lawyers will also explain to you how to keep good business methods so you don’t open yourself up to personal liability.

Tax implications:

When setting up your small business you need to think about how the company will handle federal taxes. Will it completely ignore taxes and pass it straight to the business owner? Will it pay the taxes on a corporate level? These are decisions that the business owner and our lawyers can help decide which is the best option for the growth and foundation of the business.

Articles of Incorporation:

What are the rules and framework of the company? Who decides what course of action to take in certain situations? Will your company have multiple partners or members? What are the roles of each of those members? When forming your small business there will be a lot of decisions to make and establishing how your company will operate is one of the most essential parts of a business. Speaking with a small business lawyer can help you get all your ideas down on paper and keep your company safe.

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