Understanding Business Formation
Navigating Your Business Formation Options
Choosing a business form is a big decision. The first step is understanding your options. Choices like a general partnership, a limited partnership, a corporation or a limited liability entity, each result in different liability, tax and profit structures. The type of entity may also impact your choice of insurance coverage, your investment strategy and your long-term plans for growth. When you start your business, you want to be sure that its formal organization reflects your business plan. There are more options than ever before to choose from, including:
- Family limited partnerships
- Professional corporations
- General partnerships
- Limited liability entities
- Joint venture agreements
Recommending A Form That Reflects Your Business Goals
In our role as counselor, we will advise you on the entity we believe is most likely to accomplish your business goals and facilitate your operations and transactions. This process requires you to consider many factors. Do you want to shield yourself from personal liability for the business’ debts? Is the liability insulation provided by a corporation worth a possible trade-off of double taxation? How would you like profits to be distributed among the owners? We have the experience to help you navigate each of these decisions. When beneficial, we will also work with financial professionals, such as certified public accountants, to deliver you the most accurate recommendation.
Explaining Limited Liability Entities
Limited liability entities are an increasingly popular choice among our clients. LLCs and LLPs combine some protection from personal liability with a single taxation model. As with any entity, however, you will need to correctly execute the formation documents and annually meet any annual corporate or other compliance requirements. These entities also have some limitations. The limited members generally don’t have decision-making authority. Of course, we also have creative strategies to offer, such as making a limited liability company the general partner.
Educating And Counseling You And Your Business
For over 50 years, we have helped businesses in Beaumont and throughout Texas with their entity formation decisions. When you come to our attorneys, we play a dual role. We want to educate you on the full range of options at your disposal. At the same time, we take the time to understand your bottom line. To learn more, schedule a free consultation. We are conveniently located in Beaumont and can be reached by calling 409-241-8615 or via our online contact form.