Structuring a business plan and deciding how to run a business is crucial to an enterprise’s success. But setting up a business is not always as straightforward as it may sound. In addition to deliberation involving naming a business, determining who will make decisions and conducting the day-to-day operation, business owners must also address matters such as:
Transferability of ownership
These concerns can be overwhelming to a new or existing business owner. Determining the type of entity that best suits a business plan often requires the assistance of a knowledgeable business law attorney. At Diab Law Firm, PLLC, I provide local and international business owners with the guidelines, counsel and advice necessary to take their businesses to the next level of success. Reach out to my office in Houston, Texas, today for skilled legal guidance.
Forming a business entity has many advantages for professional success. Beneficial tax structures and limits on personal liability are among the numerous advantages available to those who take the time to form an entity that best suits the nature of their business goals.
Generally, business entities include:
Sole proprietorship: This is the least formal of a business organization, where one person makes all the decisions and conducts all the business activity.
Partnership: Two or more persons doing business together for profit can create a general partnership. While a partnership agreement may be developed, there is no requirement for formally filing it with the state.
Corporation: This is a complex structure in which an entity is set up with a central management system; owners, who are called shareholders; and directors, who manage the business operations of the corporation. Establishing an “S” corporation can provide IRS benefits.
Limited partnership: This is a more formal partnership with two or more general partners and one or more limited partners. The state requires filing a certificate of formation of the limited partnership with the Texas secretary of state.
Limited liability company: This is an entity that gives the owners of the LLC flexibility and a wide breadth in the structure. An LLC can protect owners’ individual investments and provides pass-through tax benefits. The state requires filing a certificate of formation for this type of entity.
Limited liability partnership: General partners may wish to protect their liability by forming an LLP.
Organize your business for success. Contact me at Diab Law Firm, PLLC, for a free consultation.
There are many options to choose from when creating a business entity. My firm—Diab Law Firm, PLLC—provides the legal services that you need when deliberating about management, transferability, continuity, liability, government regulation and compliance, and taxes. I represent clients located throughout the U.S. and around the world. Contact me in Houston, Texas, if you need guidance in Sugar Land, Hedwig Village, Pearland or The Woodlands.