Dallas Business Formation Lawyer
Helping Start-Ups Get off the Ground & More
If you’re trying to start a new company, you need a trusted legal advisor helping guide you through the process. This is as true for experienced business owners as it is for first-time entrepreneurs. There are many legal complexities involving in building a new business, but a lawyer can help you ensure yours is properly configured from Day 1.
At Roquemore Skierski PLLC, we’re there for business owners who want to start on solid foundation with secure legal footing. We put over 25 years experience to work from you in areas such as regulatory requirements, local rules, and state laws that could easily frustrate your efforts or even undermine your business efforts. That’s why you can count on our business formation attorneys to learn as much about you, your company, and your goals in developing advising you with a customized legal strategy.
Your Business Structure Matters
When you’re developing a new business, the type of structure you select has important consequences for how your business is taxed and what your level of personal liability is to the company.
There are several different types of business structures we support. Four of the more popular options are:
- Sole proprietorships
- Limited liability companies (LLCs)
These businesses are legally indistinguishable from their owners. Sole proprietors have complete control over their companies, but are typically personally liable for all business debts and losses. Sole proprietors can also report their business expenses and income on their personal tax returns.
These businesses are owned and operated by two or more people. These are models used by professionals. Subject to the terms of the partnership agreement, Partners enjoy equal shares of company profits and losses (and debts possibly). A popular form of partnership is the limited partnerships. Because Limited Partnerships require a general partner who is responsible for management of the partnership, limited partners are usually passive investors who possess little to no decision-making authority.
Corporations are treated as their own separate legal entities. This means that business owners are pretty much shielded against all of the company’s liabilities unless they backed a debt with a personal guarantee or the legal entity is disregarded for legal reasons. By far, C- corporations provide the highest level of protection of investor / owner personal assets.
Unfortunately, however, C-corporations can be more difficult to establish and maintain, and are subject to double taxation. An S-Corporation provides the same asset protections as a C-corporation but avoids the double taxation penalty by allowing income to “pass thru” to the owners.
Limited Liability Company
An LLC is a bit of a combination between a partnership and a S-corporation. It offers a lot of the same protection against liability that a corporation offers, but allows income to pass through to each LLC owner so that it only gets taxed once. LLCs are very common types of businesses, but they’re treated differently in each state, which can make operating a business across state lines more difficult.
Do You Need Help Creating Your Business?
Our business formation attorneys in Dallas can advise you throughout the formation process so that you’ll understand which business structure is right for your goals. Because creating a new business can require various filings and permit applications, we’ll help you stay on top of everything so that you can begin working toward your goals as soon as possible.