On the road to becoming a successful business owner in the state of Texas, you will face many important decisions. One of the earliest and most critical decisions involves choosing how to structure your company in terms of business law. Because there are several different types of legal structures to choose from, new entrepreneurs find this decision particularly challenging.
As you may assume, an attorney experienced in business law can offer you significant guidance in choosing a legal structure. You can get a head start on your initial consultation by learning about these options before meeting with an attorney. This will provide you and your lawyer with a solid foundation upon which to build insightful discussions about your business structure decisions.
As its name implies, this structure type means that you are the sole owner of your company. Many new entrepreneurs find that this structure is the simplest in terms of business law requirements. For example, you will not have to file documents or pay fees in order to start doing business.
This structure works much like a sole proprietorship. However, because two or more people share company responsibility, partnerships sometimes lead to conflict between partners. However, creating ground rules and formal agreements can minimize potential conflict.
Limited Liability Company (LLC)
One of the most popular options, an LLC, limits your personal liability in many areas of business law. Examples include business debts and liability lawsuits. This is especially beneficial if your company, products or industry presents risks or hazards for consumers.
Successful new businesses help America grow and thrive while providing owners with a steady stream of income. Making well-informed decisions early in your efforts reduces your risk and increases your odds of startup success.