Limited Liability Company

 

When launching a new business, you are opening yourself up to unknown surprises and risk so make sure you protect yourself as an initial step.

There is little doubt that business ownership is one of the best ways to acquire wealth and financial freedom.  Plus, you hopefully are involved in an area where you have strong interests.  Just be smart by protecting your personal assets along the way.

The first step is forming an LLC in Texas to be the operating company. The Texas limited liability company is a legal entity that is acknowledged by the state to provide you with limited liability protection and other advantages for operating a profitable venture.

CLICK HERE if you Would Like a Free Guide About the Texas LLC or a Free LLC Name Search

FORMING AN LLC IN TEXAS RESULT IN OWNER 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.

By operating through a separate entity such as a limited liability company in Texas, you are creating a boundary of protection between the business activity and you personally. The Texas LLC laws specifically grant this protection to LLC business owners and it is in these laws where they describe what is required when forming an LLC in Texas for a business.

Texas LLC formations increase every year in Austin because of the many benefits afforded to small business by these legal entities.  In addition to risk management, there are other advantages.

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TEXAS LIMITED LIABILITY COMPANY PROVIDES EASY AND FLEXIBLE GOVERNANCE

A business owner is not required to subject his or her company to complicated and significant legal compliance requirements with an LLC.  The Texas lawmakers focused on creating a vehicle that any small business can easily operate.

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.

However, if a particular business situation requires that there be a more formal management structure or additional rules for operations, the Texas Limited Liability Company Act allows for those to be implemented for an LLC.  In other words, this entity gives owners and managers a lot of flexibility to determine the right structure and processes for their business.

A FEW OTHER BENEFITS OF FORMING AN LLC IN TEXAS

Customers and the public trust legal entity businesses.  This is because they know that the owners made efforts to organize it.  In today's world where anyone can purport to run a business by just coming up with a name, the public does not know who to trust.  LLC businesses separate themselves out from the crowd.

Texas does not impose a state income tax but every Texas business must pay federal income taxes.  A limited liability company is not subject to double taxation of corporations so it automatically creates a tax beneficial single layer of taxation.  For some larger business, a corporate tax structure may be better and in those cases, an LLC can qualify for those alternate structures as well.  Check with your accountant.

As you can see, forming an LLC in Texas is necessary for protection but can also help you to grow your business and keep more profits.

CLICK HERE if you Would Like a Free Guide About the Texas LLC or a Free LLC Name Search