Business Formation
Business Formation
You have an idea, the necessary skills, the right connections, and the plan to make it all happen. You are starting a business, and you are probably both very excited and very stressed. For all the hope and anticipation starting a new business can inspire, it can also cause equal amounts of anxiety and confusion. That’s where business formation lawyers can help.
Almost immediately, you are faced with big, jargon-filled questions that could define the future of your business: Are you forming a partnership? An LLC or a PLLC, C corp or S corp? At the very least, dealing with these difficult legal issues can take the excitement out of the process. At worst, it can lead you down a path to failure if you make even a small mistake. Fortunately, you can focus on developing your business and turn these complex legal issues to one of our business formation lawyers at Jackson, Landrith & Kulesz, PC.
Types of Business Entities
Forming your business is not usually as simple as calling yourself a business and being done with it. You may have to file formal legal paperwork to legally become a business entity in Texas.
But what kind of business entity do you need? There are several choices in Texas, and we outline the most common ones below.
C Corporations
A C corporation is the typical corporation you think of when you picture big businesses—shareholders, meeting minutes, and the like.
This is the most complicated type of business entity to form, but the potential benefits can be big: Your personal assets are protected from company liabilities absent special circumstances, you can sell shares in the business to raise a lot of money very quickly, and you can easily transfer ownership interests.
Aside from the complicated legal paperwork required, potential drawbacks of forming a C corporation include facing higher taxes than you would on your own, maintaining meeting minutes and detailed financial reports, and upholding stringent shareholder accountability rules.
S Corporations
An S corporation is organized like a “C” Corporation, but with a special election with the IRS (an “S election”). It is taxed like a partnership but has the liability protection of a C Corporation.
S corps can provide various tax benefits, such as allowing you to avoid Medicare and Social Security taxes on funds you distribute to yourself.
As a shareholder in your S corp, you theoretically face limited liability, meaning you should not be liable for the debts of the S corp. But this limited liability can have gaps in it, leaving you open to liability for negligence and guaranteeing debts of your corporation.
This business entity is a popular choice for individuals who have a low risk of facing liability, as well as little overhead.
Limited Liability Companies
A limited liability company (LLC) has similarities to corporations and partnerships.
The “limited liability” part of the name means owners’ liability related to the LLC is limited to the investment they have made in the business.
Owners of an LLC—called members—are taxed directly through a “pass-through” tax arrangement, but if the LLC makes more than a certain amount of money, it may face taxes from the state of Texas, too.
Professional LLCs and Professional Corporations
A professional LLC (PLLC) or professional corporation (PC) can be extremely similar to an LLC or corporation. The difference is simply in who, exactly, can form such a business entity. These business entities are limited to people with professional licenses—attorneys, doctors, accountants, architects, and similar professionals.
Why Clients Choose Us
The Right Legal Team Makes All the Difference
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Client-Focused and Responsive Representation
At Jackson, Landrith & Kulesz, PC, we prioritize clear and consistent communication. Our attorneys are committed to promptly returning calls and emails, keeping you informed at every step of your case.
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Experienced Legal Advocacy Across Multiple Practice AreasWith 60+ years of experience, we provide top-tier representation in immigration, family law, personal injury, real estate, estate planning, and business law.
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A Dedicated Team Ready to Fight for YouWhen legal issues arise, you need a team that acts fast. Our team gets to work immediately, using our expertise to protect your best interests and pursue the best possible outcome.
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A Proven Track Record of Success
Our firm’s long history of service to Texans speaks for itself. Clients trust us for dedicated advocacy, personalized service, and strong results—time and time again.
Why Work with Business Formation Lawyers?
Forming your business entity is what makes your business official. You do not want the first step you take as a new business to be on the wrong foot. New businesses should also be aware of the Corporate Transparency Act and its beneficial ownership reporting requirements. Qualified business formation lawyers can ensure that everything goes smoothly so you can focus on what matters: getting your new business off the ground.
An experienced business attorney or startup lawyer can provide initial and ongoing legal assistance for your business. We can help file all the paperwork, and we can create and review contracts and other agreements for you. We can handle the following, among other documents:
- Shareholder agreements
- Joint venture agreements
- Partnership agreements
- Employment contracts
- Noncompete agreements
- Corporate bylaws and minutes
- Contracts with independent contractors and vendors
Contact Jackson, Landrith & Kulesz, PC
Your business is going to be a big part of your life. You need a legal guide who takes it as seriously as you do. That is what you will get with Arlington business formation lawyers Jackson, Landrith & Kulesz, PC. Our full-service law firm stands ready to handle all of your business’ legal needs.
For help forming the business you are dreaming of, get in touch with the experienced business attorneys at Jackson, Landrith & Kulesz, PC today.