WHY CHOOSE A TEXAS LLC??
The Texas limited liability company (LLC) is quickly becoming a popular choice for all sizes of businesses. The Texas LLC is a hybrid business form that contains characteristics of both a corporation and a partnership. Owners of a properly formed Texas LLC have liability protection similar to that of a corporation. This can protect a business owner from personal liability for the business’ debts and liabilities while also protecting the company from the debts and liabilities of its owners.
The Texas LLC business entity is owned by its “members.” It allows for more freedom in how owners manage their business. A company can either be manager-managed or member-managed. Members are able to allow managers to essentially run the company and are not legally obligated to give them an ownership interest. This is similar to a corporate board of directors, but without the required formalities involved in owning and operating a corporation. Members can choose to run the company themselves without having the worries of personal liability as general partners would in a partnership structure.
The Texas LLC also offers tax advantages for its members. Members have the choice of being taxed as a partnership or corporation. Flexibility in your tax structure allows for more control and lets you build a business your way.
The Texas LLC is great for entrepreneurs wanting flexible tax planning and non-exposure to personal liability. Our Texas Business Attorneys are here to help you get your company started.
IS A TEXAS SERIES LLC A BETTER CHOICE FOR ME?
A Texas Series LLC allows you to compartmentalize assets and liabilities within separate cells or “series” of a single Texas LLC. This provides a means of isolating the assets of one series from the liabilities of the Texas LLC or other series. This is ideal for a business owner with multiple large assets or lines of business.
There is virtually no limit to the number of series that an owner can establish through a Texas Series LLC. Dividing assets and liabilities into different series, all within one Texas LLC, can help avoid the inefficiencies and costs associated with multiple related entities, such as corporations with subsidiaries. Debts, obligations, and liabilities of one series will be enforceable only against that series’ assets. The Texas LLC and the other series contained within it will be protected.
Entrepreneurs who want this type of structure and protection should contact our Texas Business Attorneys today.