When setting up a new business determining the type of business structure to use can be confusing and overwhelming. In addition, the consequence of choosing the wrong business structure can subject you to liabilities you never intended when setting up your business.
As a potential business owner, you have the option of setting your business up as a sole proprietorship, a general partnership, or as a corporation. There are also several variations of each of these business structures that will change your potential liabilities as the owner of your business. An attorney can help you determine which business structure is best suited to fit your needs as a business owner.
Forming a Texas sole proprietorship is simple. As a sole proprietor, you have the ease of conducting your business any way you wish. You do not have to answer to any partners nor do you have to meet any corporate formalities. However, you can be subject to potentially devastating liabilities.
It is much more difficult to form the more extensively complex business structures, such as Texas partnerships or corporations. They both generally require you to file documents and pay additional fees. These complex business structures can potentially protect you from being personally liable for any obligations of the business. If the business is not properly formed, however, you may be personally liable for the debts and obligations of the business. An attorney can help insure that your business has been properly formed, so you may be adequately protected.
Choosing which business structure is extremely difficult as each structure has its own advantages as well as its own disadvantages. Failing to choose the correct business structure could be the difference between a successful business and one that ends in failure. The attorneys at our firm have the knowledge and experience to help you decide which business structure will make your business one that succeeds and meets all of your expectations. Call and set up an appointment with Thad Finley or Virginia Hammerle today. They would be happy to meet with you in our Lewisville office, or at one of our other locations. And we can also come to your place of business!