Choosing an LLC business structure for your business
Forming a new company can be an exciting and daunting challenge. Without a helpful aide, entrepreneurs may be overwhelmed by the vast array of options that are available.
One of the best tools in a Texas business owner’s tool kit is the utilization of the limited liability company.
The LLC has become exceptionally popular in the past few decades due to how easy it is to form and the control it grants the members of the organization.
To form an LLC, an entrepreneur should contact their Secretary of State’s office to ensure compliance with all formation requirements. Failure to properly form an LLC can eliminate some of the protections an LLC offers.
Some of these requirements may include:
- Paying a filing fee
- Creating an operating agreement
- Disclosure of LLC member investors
Benefits of an LLC
As mentioned earlier, there are many benefits to choosing to make your business an LLC. Some of these benefits include:
- Avoiding personal liability for business debts
- Pass-through taxation, allowing owners to avoid paying corporate taxes and instead pay income tax on company profits on their personal tax returns
- Flexible management, allowing for shareholder involvement
If you are interested in forming an LLC but do not know where to begin, consider speaking with a business law attorney. Your attorney can walk you through the process and make sure you meet all the necessary requirements.