Starting a small business is exciting but is not without risk. Accordingly, personal liability protection should be your first priority.
Entrepreneurship is one of the best and fastest path to wealth and independence. And, it can be a way to pursue a passion or interest of yours. The smart business owner should protect himself or herself personally as part of this journey.
The best legal entity for small business protection is known as the limited liability company in Texas. This is a creature of state laws and Texas offers a solid set of LLC laws aimed at providing small business owners with some major benefits when operating a business.
FORMING AN LLC IN TEXAS FOR PERSONAL ASSET PROTECTION
Business owners operating without the benefit of a protection vehicle like a Texas LLC have lost their homes and savings due to liability arising from business activity. So, it is important to plan against those surprises and potential pitfalls.
Businesses by definition need to take on some risk in order to be profitable and sustainable. Any time your business activity involves another party, there gives rise to a potential for disputes, accidents, and lawsuits down the road.
The limited liability company in Texas provides a layer of protection between you and your personal assets and you business. The Texas Limited Liability Company Act specifically offers this protection and makes the forming of an LLC in Texas a relatively straightforward process.
Texas business owners are choosing the LLC more and more each year. The number of limited liability company formations increase every year. This is not only because of the necessary protection but because it also offers other major benefits for a small business.
TEXAS LIMITED LIABILITY COMPANY PROVIDES EASY AND FLEXIBLE GOVERNANCE
The Texas legislature specifically made the LLC legal requirements more simple to ensure that business owners would not form one due to complex compliance and administrative mandates.
A Texas LLC is only required to have a simple governance structure with minimal rules. After forming an LLC in Texas, there are no required meetings or the need for centralized management.
On the other hand, if a particular company requires additional rules and processes, the Texas Limited Liability Company Act allows for this as well. In summary, business owners can tailor their management and ownership structure based on the particular circumstances and not a one size fits all legally required structure.
A FEW OTHER BENEFITS OF FORMING AN LLC IN TEXAS
Many businesses are started every day in Texas. With a legal entity business like an LLC, your get an advantage over the thousands of sole proprietor businesses because a Texas limited liability company provides an official and trustworthy image for your new business which makes getting customers easier. Customers know that those companies that have gone through the effort of forming a legal entity with the state are more serious and are less likely to be fly by night, unprofessional or fraudulent.
And, the LLC offers the most choice when it comes to federal taxation. The business will automatically qualify for a single layer of taxation which can save a heap of taxes compared to the double taxation of C corporation. On the other hand, if your accountant concludes that for your business, a corporate tax structure would be better, the Texas limited liability company can elect to be taxed under the corporate structures.
Forming an LLC in Texas is an important first step towards a successful business that will not only provide you with financial independence but also with protection and tax benefits. - 15246
Entrepreneurship is one of the best and fastest path to wealth and independence. And, it can be a way to pursue a passion or interest of yours. The smart business owner should protect himself or herself personally as part of this journey.
The best legal entity for small business protection is known as the limited liability company in Texas. This is a creature of state laws and Texas offers a solid set of LLC laws aimed at providing small business owners with some major benefits when operating a business.
FORMING AN LLC IN TEXAS FOR PERSONAL ASSET PROTECTION
Business owners operating without the benefit of a protection vehicle like a Texas LLC have lost their homes and savings due to liability arising from business activity. So, it is important to plan against those surprises and potential pitfalls.
Businesses by definition need to take on some risk in order to be profitable and sustainable. Any time your business activity involves another party, there gives rise to a potential for disputes, accidents, and lawsuits down the road.
The limited liability company in Texas provides a layer of protection between you and your personal assets and you business. The Texas Limited Liability Company Act specifically offers this protection and makes the forming of an LLC in Texas a relatively straightforward process.
Texas business owners are choosing the LLC more and more each year. The number of limited liability company formations increase every year. This is not only because of the necessary protection but because it also offers other major benefits for a small business.
TEXAS LIMITED LIABILITY COMPANY PROVIDES EASY AND FLEXIBLE GOVERNANCE
The Texas legislature specifically made the LLC legal requirements more simple to ensure that business owners would not form one due to complex compliance and administrative mandates.
A Texas LLC is only required to have a simple governance structure with minimal rules. After forming an LLC in Texas, there are no required meetings or the need for centralized management.
On the other hand, if a particular company requires additional rules and processes, the Texas Limited Liability Company Act allows for this as well. In summary, business owners can tailor their management and ownership structure based on the particular circumstances and not a one size fits all legally required structure.
A FEW OTHER BENEFITS OF FORMING AN LLC IN TEXAS
Many businesses are started every day in Texas. With a legal entity business like an LLC, your get an advantage over the thousands of sole proprietor businesses because a Texas limited liability company provides an official and trustworthy image for your new business which makes getting customers easier. Customers know that those companies that have gone through the effort of forming a legal entity with the state are more serious and are less likely to be fly by night, unprofessional or fraudulent.
And, the LLC offers the most choice when it comes to federal taxation. The business will automatically qualify for a single layer of taxation which can save a heap of taxes compared to the double taxation of C corporation. On the other hand, if your accountant concludes that for your business, a corporate tax structure would be better, the Texas limited liability company can elect to be taxed under the corporate structures.
Forming an LLC in Texas is an important first step towards a successful business that will not only provide you with financial independence but also with protection and tax benefits. - 15246
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