Business and Collections Attorney in Houston, TX
Starting a business requires more than just raising capital and building a client base. There are many steps that need to be taken to protect your assets, comply with state laws, and mitigate your tax liability. In addition, a new corporate entity may need to be created in order to combine existing businesses, undertake a specific project, raise capital, protect certain assets, shelter an investor, or invest in real estate.
We can evaluate your business needs and are experienced in the formation of the following entities:
CORPORATION: A corporation is a separate and distinct entity from its owners, or shareholders. The shareholders are insulated from liability for the corporation’s obligations and may or may not participate in management of the business.
SUBCHAPTER S CORPORATION: A subchapter S corporation, or S-Corp, is simply a corporation whose owners have elected to treat the company’s profits as partnership profits under Subchapter S of the tax code.
GENERAL PARTNERSHIP: A general partnership is the most basic entity and is simply defined as an association of two or more persons who join to carry on a business for profit. Each partner is individually liable for the partnership’s obligations.
LIMITED PARTNERSHIP: A limited partnership is a partnership with one or more general partners and one or more limited partners. This entity is designed to protect the limited partner’s assets at the expense of control over the partnership’s day to day operations. The general partner(s) are treated the same as a general partnership while the limited partner(s) are protected from liability for the partnership’s obligations.
LIMITED LIABILITY PARTNERSHIP: A limited liability partnership is a partnership in which the individual liability of the partners is limited. Generally, the partners are not liable for the partnership’s obligations.
PROFESSIONAL CORPORATION: A professional corporation is the same as a corporation described above but certain professions are required by law to form PC’s.
LIMITED LIABILITY COMPANY: A limited liability company is a separate entity from the business owners, much like a corporation. The rules governing LLC’s are flexible and the entity can be designed to operate how the owner’s choose.
The type of entity that is appropriate for any given situation can vary. There may be multiple options available. We will consider the goals of the business, the risks involved with the business, the number and type of owners, the number of employees, growth, transferability of ownership, availability of capital, liability concerns, and the use of outside investors.
Contact us for a free consultation at 281.407.6244.