Houston Business Formation & Corporate Attorneys
At Vethan Law Firm, our business and corporate attorneys serving Houston and the surrounding Texas areas are here to serve the needs of a wide variety of business entrepreneurs and owners, from growing family-owned businesses to corporations with franchises and divisions all over the world. Our Texas-based firm provides the counsel you need to design an effective corporate organizational structure and create company agreements, including shareholder agreements, partnership agreements, and operating agreements, as well as the ancillary buy-sell agreements, to define the roles and responsibilities of the governing persons, managers, and other key individuals in the company hierarchy.
As corporate counsel, VLF often helps new and reorganizing companies determine which business form is appropriate for the venture. Most frequently, this turns out to be a limited partnership (LP), a limited liability company (LLC), a series LLC, a corporation, or, for certain professionals, a professional association, a professional corporation, or a professional LLC.
Our goal is to provide you with sound and steady legal guidance, in even the most tenuous circumstances, and build a foundation for a long-time strategic alliance.
Email us or call (888) 650-5011 to book a free introductory consultation with a Houston business formation lawyer today. Hablamos español.
Business Formation & Corporate Organization in Texas
Business formation involves selecting the most appropriate structure for your business, registering it with the state, and completing the necessary legal and regulatory requirements. The chosen structure determines how your business will be taxed, its liability protection, and its management structure, among other things.
Each business structure has advantages and disadvantages that you should understand before selecting what is right for your startup or reorganization.
Examples of business structures and their pros and cons include:
Sole Proprietorship: This is the simplest form of business structure, where the owners operate the business as an extension of themselves.
Advantages: Easy and inexpensive to set up, the owner has full control over the business, no separate tax filing is required; income and losses are reported on the owner's personal tax return.
Disadvantages: No liability protection (the owner is personally responsible for all business debts and legal obligations), and limited growth potential due to difficulties in raising capital.
Partnership: A partnership is a business owned by two or more individuals who share profits and losses. Two common types of partnerships are available: General Partnership (GP) and Limited Partnership (LP).
Advantages: Relatively easy to establish, shared responsibility and resources, profits and losses flow through to partners' personal tax returns.
Disadvantages: General partners have unlimited personal liability for business debts and obligations and potential conflicts between partners. Limited partners have limited control over the business.
Corporation: A corporation is a separate legal entity owned by shareholders. Two main types of corporations exist, C-corporations and S-corporations.
Advantages: Limited liability for shareholders, easier to raise capital through the issuance of stock, and perpetual existence, as the business continues even if the owner dies or leaves.
Disadvantages: More complex and expensive to set up and maintain, double taxation for C-corporations (profits taxed at the corporate level and dividends taxed at the shareholder level), more regulations, and reporting requirements.
Limited Liability Company (LLC): An LLC is a hybrid structure that combines elements of both partnerships and corporations.
Advantages: Limited liability protection for owners (called "members"), pass-through taxation, with profits and losses reported on members' personal tax returns only (avoiding double taxation), and flexible management structure.
Disadvantages: More complex and expensive to set up than sole proprietorships or partnerships. Currently in Texas, LLC members face self-employment taxes for Social Security and Medicare, at a rate of approximately 15.3 percent.
Why Is the Right Business Structure Crucial to Your Company?
Proper business structure is crucial in Texas because it affects the liability protection afforded to owners, tax implications, and overall operational efficiency. Choosing the right structure can help protect your personal assets, minimize tax liabilities, and create a solid foundation for growth and success.
At VLF, we can be instrumental in helping you navigate the complexities of business formation.
We can help you:
- Understand the advantages and disadvantages of each structure
- Choose the most suitable structure for your business needs and objectives
- Draft and review partnership agreements, operating agreements, or bylaws
- Ensure compliance with state registration and ongoing reporting requirements
- Provide guidance on legal issues that may arise during the course of business operations
Partner with a Houston Business Formation Attorney at VLF
Selecting the appropriate business structure is a critical step in establishing a successful enterprise. Consulting with one of our competent business lawyers can provide valuable insight and support to ensure your business is set up for long-term success.
Connect with Vethan Law Firm with an online message or call (888) 650-5011 today.
They always provided professional expertise, were incredibly helpful, and help us win our case!- Brenda U.
They were always professional and on top of their game! Thanks for helping me win my case!- Daniel H.
If you find yourself in need of legal counsel, I can attest to his professionalism, wealth of knowledge, and fervent attention to you and your needs.- Shawn M.
It was the most stressful experience I have ever faced, and I am thankful that Charles Vethan and his team took control of the case, from start to finish.- Karl D.
I couldn't have chosen better. Charles Vethan was far more knowledgeable and aggressive on our behalf than any other lawyer I have ever heard of.- Dave M.
My partner that tried to steal from the business didn't know what hit him when Charles got done with him.- Sean M.
Charles and Diren are more than just experienced attorneys. They are great business coaches and great assets for any business owner.- Kestutis G.
The staff and Charles Vethan are all very knowledgeable, trustworthy, friendly, and reasonable.- Stacy J.