Starting a business is an important decision and working with a business entities attorney in San Antonio can help you make the right decision about which type of business you'd like to start. Each year the total number of business establishments in Texas increases and within a three-month period of the year 2016 there were 18,499 new Texas businesses established. During that same period, there were 240,000 new businesses established across the United States.
San Antonio Business Entity Attorney's Role
San Antonio business entities attorneys routinely assist in the formation of businesses and provide on-going counseling on maintaining of the following business entities:
- Limited Liability Companies (LLCs)
- S Corporations
- C Corporations
- Limited Partnerships (LPs)
- Professional Limited Liability Companies (PLLCs)
Deciding which business structure is best for you, based on your needs and the scope of your business, is the foundation for creating a durable business. A consummate business entities lawyer could help you to understand the intricacies in establishing your business organization into one of the following:
Limited Liability Companies (LLC)
The LLC structure limits the owner's personal liability for business debts and court judgments against the business by enforcing limited personal liability for debts and claims. LLCs may be the correct choice for business owners that may be sued, have accumulating business debts, and for individuals interested in protecting their personal assets from business lenders.
LLCs are simple and inexpensive to form and offer flexibility in their ownership and management structures. The disadvantages of becoming an LLC are that they may come with a state franchise tax, document filings, and fees.
An S corporation is also known as an S subchapter and gives corporations with 100 or fewer shareholders the benefits of incorporation while being taxed as a partnership. S corporation shareholders are individuals, specific trusts and estates, or certain tax-exempt organizations that report their income and losses on their individual tax returns and pay their taxes at the normal rates.
In some states S corporation owners pay annual report fees, a franchise tax, and the owner is responsible for obtaining a registered agent and submitting their Articles of Incorporation with the Secretary of State.
A C corporation is structured so that owners or shareholders are taxed separately from the business entity. C corporation profits are taxed on the business and individual level.
C corporations are mandated by law to hold annual meetings and shareholders elect a board of directors. C corporations are also required to register with the Securities and Exchange Commissions and sell shares in the business.
C corporations limit the investor's liability because the most they can lose is the amount they've invested. The legal obligations of a C corporation are also prohibited from becoming a personal debt obligation of company associates.
A limited partnership is comprised of two or more partners including a general partner that oversees business operations. The general partner is liable for the business' debts and limited partners are solely liable up to the amount of their investment. There are three types of limited partnerships including limited partnerships, general partnerships, and joint ventures.
Professional Limited Liability Companies
A limited liability company is structured so that each partner's liability is limited to the amount they put in the business, the risks are shared, and the entity is responsible for dividing up the labor and management responsibilities. Limited liability prevents creditors from taking a partner's personal assets. A limited liability company has more flexibility letting partners out and adding new partners into the company.
Upon selecting the correct business entity, an experienced business entities attorney and real estate attorney in San Antonio TX can support you with incorporating your business, and drafting the following documentation for the organization and structuring of your business:
- Articles of Incorporation
- Shareholder agreements
- Operations agreements
Contact the Brown Law Firm for additional assistance with business formation.