Legal Question in Business Law in Texas

Each type of business entity has its own ups and downs. However, an LLC is definitely an attractive option. Let me know if you would like me to handle the formation of your new venture.

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Depending on the financial success of your business, an LLC may expose you to greater tax liability. LLCs are often attractive for start up operations because of the ease of corporate formalities. However, as your business grows and prospers the disadvantages of an LLC structure increase. LLCs with only individual members are often taxed like a partnership. Many investors prefer not to invest in an LLC structure unless the company has definite exist strategy to sell off and distribute all assets of the LLC at an specific time. I often ask clients to consider the S-Corp. The shareholders of an S-Corp may have greater control in mitigating potential tax liability. Always remember that you change your initial entity selection through merger or conversion, should your business circumstance. I'm in Fort Worth, so please consult your local bar associations for a list of attorneys that could assist you in greater detail. Good luck!