Business Organization in Texas
Prior to forming a business organization, it is important to review the advantages and disadvantages of each entity type before selecting the business structure for your venture.
Some of the considerations may include issues of liability, management or governing of the business, tax treatment, transferability of ownership interests and formality of operation.
Forming an LLC or Corporation in Texas
Seeking legal counsel at the formation stage is imperative.
Choosing the appropriate business structure and forming the entity correctly in the beginning stages of developing your business may save you a great deal in the long run. Correcting mistakes of business formation may be costly and time consuming.
There are many types of business organizations. The following are some of the most frequently created and operated:
- Limited Liability Corporation or LLC (it is recommended using an LLC rather than forming a Sole Proprietorship)
- Limited Partnership
Assumed Name Certificates, also known as DBA (Doing Business As)
Each person or entity that provides services or conducts business under a name that is not the same as their legal name or the business entity name must file an Assumed Name Certificate. This is a mandatory requirement in Texas.