BUSINESS SERVICES
Legal Services For Businesses
Incorporation/Business Entity Formation
There are multiple types of business entities available for companies who incorporate in Texas. Each type of entity has different characteristics. There is no “best” type of entity. However, each different structure has advantages and disadvantages, which make them more or less suitable for each different business. The choice of entity formation is largely determined by how the business plans to operate, what is determined as an acceptable level of risk, and tax planning.
It is possible to change the type of entity you have chosen for your business. However, doing so is a little bit like trying to remodel a boat while you are at sea, so it is best to take careful consideration regarding your choice of entity before you incorporate in order to limit your headaches and expenses down the road.
In making a choice, you will want to take into account the following:
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Your vision regarding the size and nature of your business.
The level of control you wish to have.
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The level of structure you are willing to deal with.
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The business' vulnerability to lawsuits.
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Tax implications of the different ownership structures.
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Expected profit (or loss) of the business.
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Whether or not you need to reinvest earnings into the business.
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Your need for access to cash out of the business for yourself.
Listed below are the different types of entities available in Texas, advantages and disadvantages of each, and additional services we can provide along with the formation of the entity. Contact our firm today and we can provide you with counseling and incorporation services regarding which entity type is best suited for you and your business.
