Corporate Transactions Business Formation
Texas has a long tradition of being the birthplace of big things, including some of largest companies in the world. If you have big dreams for a business you would like to start, our firm can help you get on solid footing.
Figuring out how to incorporate your business is the first step in starting your business, and the structure you chose will have an impact on everything from taxation to record keeping to liability. The general types of business we help clients explore include:
- Sole Proprietorship – This is created when one individual has his or her own business. There are few legal implications with starting this type of business, but it can be difficult for an individual to protect their personal assets from being exposed to liability in this structure.
- Corporation – Most large businesses are corporations and it is a good structure for organizations that have a great deal of risk and liability. Individual shareholders can be held liable up to their investment in the corporation, but their personal assets cannot be reached.
- Partnership – This type of organization is comprised of two or more individuals who want to form a business and be full partners. With a partnership, each partner is liable for debts and legal responsibilities, and is also liable for the actions of their partner.
- Limited partnership – In a limited partnership there are two types of partners—general partners and limited partners. Limited partners are not responsible for the debts or the management of the partnership, and are only liable for their investment. The general partner is in charge of managing the partnership and can be held personally responsible for its debts.
- Limited liability company – A hybrid of a corporation and a partnership, this structure provides personal liability protection for debts and legal responsibilities for individuals involved with the LLC, but is generally treated as a non-corporate entity in terms of taxation.
Part of setting up the structure of a company involves agreements between partners, shareholders, and any other entities affiliated with a new venture. Accounting procedures need to be put in proper order as well. There are also considerations when raising additional capital that we can help you explore. Additionally, sometimes companies decide to restructure and many of the same issues that come into play when setting up a new business are also present in the restructuring process.
Okin Adams: Houston Business Formation Lawyers
We can help you determine which structure is right for you and help you navigate those first few years of getting on your feet. Please feel free to contact us to work with you on all your business formation needs and questions.
Edward A. Clarkson, III Edward's primary area of practice focuses on all aspects of restructuring and reorganization work, including representation of corporate debtors and creditors.Read more