Business Formations Attorney in Houston TX

If you’re starting a new business in Houston (or Texas), choosing a legal business entity is the first step you need to make. It can be overwhelming and stressful, especially if this is your first time doing so, but choosing the proper entity structure will set the building blocks for your company.

Many business owners will attempt to form their business on their own. If you have a strong understanding of legal entity formations, and your business is relatively simple (i.e. one owner, filing for an LLC), then it’s something we recommend you do on your own.

Walker Law PC offers a complimentary 15-minute phone consultation with our Client Coordinator. Click here to submit an online form.

Do I need to consult with a Houston attorney on business formations?

Meeting with Houston attorney in room

There are many instances when it’s in your best interest to receive advice from a business attorney. Yes, you can save money by not consulting with an attorney, but there can be major issues down the road that can potentially cost your business thousands of dollars.

Depending on your business and the complexity of your services or products, there are several factors you must take into consideration when forming your business that should be consulted with an attorney and accountant:

  1. Tax setup
  2. Liability
  3. Management
  4. Continuity
  5. Transferability of ownership interests
  6. Formality of operation

If you currently own a business but have not formerly consulted with an attorney to form your business, then this is an ideal service for you. As your business grows and your infrastructure gets more complex, the chances of your business being at risk greatly increases.

Here are a few questions you should take into consideration:

  1. Depending on the type of business you have, what type of legal liability do you need to keep yourself protected?
  2. In the type of business you operate, what are the opportunities to minimize taxation?
  3. What if you want to bring on multiple partners or investors in your business?
That’s why we offer a complimentary 15-minute phone consultation with our Client Coordinator. We’ll identify the baseline points of your business and give you the proper recommendations on the next steps you need to take.

Can I use something like LegalZoom and do it on my own?

As stated earlier, there are a lot of variables to take into consideration when forming your business. Depending on how you form your business will determine the personal liability of the founders, how taxes are paid, and other important details.

That means you can potentially overpay in taxes, giving money away to the state that you can otherwise put to use somewhere else, like in growing your business.

A lot of the problems that can happen are not obvious. It’s difficult to foresee the problems without having the proper knowledge and experience. That’s why we recommend you consult with an attorney on this matter.

It’s not just about performing a Google search and reading a few blog posts on forming a business. These are the building blocks for potential years to come, and you want to make sure you start off on the right foot.

What types of formations are there for businesses?

  1. Sole proprietorship: The most common and the simplest form of business is the sole proprietorship. This is typically when someone files for a DBA (Doing Business As).
  2. General partnership: A general partnership is created when two or more persons associate to carry on a business for profit.
  3. Corporation (C-corp): It’s the most common type in the U.S. It offers unlimited growth potential and allows you to bring on investors. There is also no limit to the number of shareholders a c-corp can have.
  4. Limited Liability Company (LLC): It’s the least complex business structure and the most popular in Texas. It gives you the perk of pass-through taxes, limited liability, and it legally separates your personal assets from your business.
  5. Limited Partnership: A Texas limited partnership is a partnership formed by two or more persons and having one or more general partners and one or more limited partners.
  6. Limited Liability Partnership: In order to limit the liability of its general partners, a general or limited partnership may opt to register as a limited liability partnership

Walker Law PC offers a complimentary 15-minute phone consultation with our Client Coordinator. Click here to submit your online form.

What type formation best fits my business?

There is no cookie-cutter answer to this question. Every business and business owner will bring it’s own unique set of criteria. If your business offers services that are risky or dangerous, such as building or repairing structures or vehicles, or caring for children or animals, then you’ll want to form a business entity protects your personal assets (i.e. hour or car) from business debts and claims (Limited Liability Company, LLC).

There are dozens of other scenarios that your business can be in, each resulting in a different answer. You don’t just want to assume what type of business you should form. You want to know the exact reasons and the pros and cons on what business entity to choose.

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