Creating an LLC in Texas
Our small business lawyers can help you create an LLC in Texas. A limited liability company, often referred to as an LLC, is a business structure that provides limited protection for personal liability of the owner/member while also allowing for certain tax advantages.
The law prohibits certain types of business from forming or operating as an LLC. Examples of these prohibiting businesses including, but are not limited to, banks and insurance companies.
An LLC is often thought of as a combination of a corporation and a general partnership. Generally, an LLC should have two or more members. However, there are ways to structure an LLC with only one owner. Contact our Dallas business lawyers today to discuss your needs.
Owners of an LLC are called members. Generally, an LLC consists of two of more individuals, corporations, or other LLCs. Each structure has different advantages and disadvantages. Thus, it is import to discuss your business plans and goals with a small business lawyer before filing paperwork with the Texas Secretary of State.
LLCs are normally taxed differently than corporations. Generally, each member of an LLC is taxed on a pass through basis. This protects LLCs members from double taxation that may be experienced by shareholders in a corporation. Our small business lawyers will help you understand your options and create an LLC. Contact us today to discuss your needs.LLC Operating Agreements in Texas
Every LLC should have an operating agreement. An operating agreement records the LLC's financial structure, organization, company rules, and regulations. Operating agreements are highly recommended for multi-member LLCs because the operating agreement will outline how the business will run and minimize risk of misunderstanding or disputes between the members. An operating agreement may also provide for the transfer or dissolution of the company upon a certain event.
Our small business lawyers can draft an operating agreement for your LLC that helps your business achieve its goals. Contact our small business law firm today to discuss your needs.Advantages of an LLC in Texas
There are numerous advantages to forming an LLC in Texas. First, members of an LLC often protect themselves from personal liability for debts or judgments incurred by the LLC. For example, if the LLC becomes liable to a customer for breaching a contract, an individual member may be protected from being personally liable for damages caused by the LLC. However, a member of the LLC may not be protected for their own wrongful or intentional actions.
Normally, LLCs require less formality and filings than corporations or s-corporations. LLCs may also offer less restrictions on the way the business can share profits amongst its members. To discuss more advantages and disadvantages of creating an LLC, contact our small business lawyers today.