Set up a Business in Texas
Real Estate Law For Current or Prospective Property Owners
Set up a Business in Texas
Real Estate Law For Current or Prospective Property Owners
Start a Business in Texas
Before selecting your new Texas business entity form, it is important to consider the advantages and disadvantages of each organization type before selecting the business structure for your venture.
Considerations of starting a business in Texas include issues of personal liability protection for the owner or owners of the business, and the ease of management or governing of the business.
Furthermore, you should also take into account the tax treatment of the new business, the transferability of ownership interests and the formality of operation.
Texas Business Entities
When you plan to form an LLC or other business entity in Texas, seeking legal counsel at the formation stage of your company is imperative.
Selecting the appropriate business structure and forming the entity correctly in the beginning stages of developing your business may save you a great deal in the long run. Correcting mistakes in business formation may be costly and time-consuming.
There are many types of business organizations to consider when you set up a business in Texas. The following are some of the most frequently created and operated:
LLC Formation
A Limited Liability Company or LLC is a common business choice. If properly formed and managed, it may provide liability protection for the owners against claims asserted against the business. You still need to have sufficient liability insurance to protect the owners from negligence claims.
To create an LLC, you will need to properly prepare and file a Certificate of Formation with the Texas Secretary of State and receive written authority from the state before you can proceed with business.
General Partnership
A General Partnership is a business owned by two or more owners. It provides no liability protection for the owners against claims asserted against the business. The owners will need to rely on liability insurance for protection against claims.
A General Partnership does not need to file any documents with the State of Texas to form the business, but you need to file an Assumed Name Certificate with the county clerk to publicly identify all owners of the General Partnership.
Series LLC
A Series LLC is a special type of Limited Liability Company that can be used when there are multiple owners and multiple properties to be owned by the business.
To create a Series LLC, you are required to file a Certificate of Formation with the Texas Secretary of State and receive written authority before operating the business.
Limited Partnership
A Limited Partnership is a partnership composed of at least one general partner who runs the business, and at least one limited partner who does not run the business.
A limited partnership provides some liability protection for the limited partners but none for the general partner.
Corporation
A Corporation is one of the oldest forms of business organizations in Texas and is very similar to a Limited Liability Company. A Corporation provides liability protection for its owners. It can be more complicated to operate if there is more than one owner, which is why people often prefer to form a Limited Liability Company instead of a Corporation.
To form a corporation, you are required to file a Certificate of Formation with the Texas Secretary of State and receive permission to conduct business in Texas before you start your business operation.
SOLE PROPRIETORSHIP
Most businesses start as a Sole Proprietorship. A single owner with a business idea. There is no liability protection for the owner. You will need to rely on liability insurance to protect you from claims.
You do not need to file any documents with the State of Texas to form the business, unless you intend to conduct business using an assumed or fictitious name.
Experienced Texas Real Estate Lawyer
Do you have questions about starting a business in Texas? Email your questions directly to attorney Scott Steinbach at scott@steinbachlaw.com. Or speak with him at 972-960-1850.
The Steinbach Law Firm, P.C. prepares documents to form your new business entity.
Scott Steinbach is AV Preeminent rated by Martindale-Hubbell. Peer rated for Highest Level of Professional Excellence.