Helping Texas Businesses With Issues Of Entity Formation
The first, and perhaps most important, step you take when starting a business will be the tax entity you choose to operate under. How you establish your company will make a difference in how much personal risk you are willing to take, whether partners can readily invest and even how you draw your paycheck or invest in your success.
We are the corporate lawyers of Wright & Greenhill, P.C., in Austin, Texas. Since opening our doors in 1985, we have grown to be the law firm that business owners of all sizes have come to trust. After more than 30 years, our clients now include some of the most successful businesses in the Austin metropolitan area and throughout Central Texas.
We are most proud of our record of helping individuals and business partnerships who come into our office with a business idea walk out with their dreams fulfilled.
If you are considering starting, buying or merging a business in Austin or elsewhere in Texas, let us help you guide your goals to become a reality.
Our attorneys will help you understand which business formation option is best for you. Different types include:
Limited Liability Company (LLC) And Limited Liability Partnership (LLP)
- The legal structure is independent of the owners
- Retains a separation between the owner’s personal assets and company liabilities
- Taxed as a sole proprietorship or a partnership
- Allows for an unlimited number of investing owners (partners)
- No annual shareholder meetings required
- Operating agreements must be drafted, approve by the owners and adhered to
- Tax and legal structures separate from their owners
- Keeps personal assets and liabilities separate from the business
- Unlimited shareholders allowed
- Corporate profits and dividends to shareholders will be taxed
- Annual investor meetings required, along with recorded minutes
- Independent tax and legal structures separate from the owners
- Retains some separation between owners’ personal assets and business debts and liability
- Investing partners must report profits and loss on their personal tax returns
- The number of shareholders will be limited. All must be U.S. citizens or legal residents
- Annual shareholder meetings required, including recorded minutes
- Investing or operating partners will be personally liable
- Not required to file the partnership with the state
- Perhaps the simplest entity to form and dissolve
- Investing partners must report earnings, profits (or losses) on personal tax returns
- Owner is strictly liable for all lawsuits filed against the business
The owner does not need to file with the state before forming
- Like a partnership, very easy to set up and operate
- Business profits and losses must be reported on the owner’s personal tax return
Contact Us To Discuss Your Business Goals
For the convenience of our clients, we provide legal guidance in Spanish, French .