Choices For The Business Owner In Houston, Texas

Choices For The Business Owner In
Houston, Texas
Houston

www.thesolomonlawfirm.com

Choices for the Business Owner
» Whether you are just starting a business, or you have been in business for
a while, there are important things to consider about your business.
Sometimes a business owner realizes that what started out as a dream or
a hobby has turned into a real business.
» Because it happened so slowly and unexpectedly, the business owner just
used his personal checking account to handle the business of the new
company. Often there is no “company,” but simply someone who is doing
business in their own name.


» If you find yourself in this position, or if you want to get started in
business the right way, you should seriously consider speaking with an
experienced business attorney.
» The decision may seem simple, but there are many reasons to think
carefully and make deliberate choices when structuring a business entity.
You may have heard of the possible choices for how you can engage in
business, but do you understand the risks, advantages, and disadvantages
of each of them?


1 Sole Proprietorship –
1
• Many businesses start this way. The person who starts the
business pays the expenses of the business from his personal
checking account and uses his own savings to fund the business.
• Money earned by the business is deposited into the personal
checking account of the owner as well. This business owner is
commingling the funds of the business with his personal funds.
• He is creating a mess, to be blunt about it. He is putting all of his
assets at risk if something goes wrong in his business. Does this
sound like you and your business?


2 Partnership –
2
• A partnership is usually defined as being two or more persons who
carry on as co-owners a business for profit. There is no
requirement that these partners file any formal papers to form
their partnership.
• There is no requirement that they prepare or sign any papers that
show what their agreement is, how profits or losses will be shared, or
who has what rights. People who engage in business in this manner
are also creating a mess. Does this sound like you and your business?


3 General Partnership –
3
• Whoever is a general partner in a business is liable for all the
debts of the business.
• Is this where you want to be with your business? Did you know that
there a safer way to do business while still keeping the flexibility and
benefits of a partnership?


4 Limited Partnership –
4
• Now we are getting into the kinds of business structures that
require the filing of formal papers in order to start the business. A
limited partner is usually not liable for the debts of a partnership.
• All the limited partner has at risk is his investment in the business –
if the limited partner doesn’t do the kinds of things that will subject
him to liability for all the debts of the business.
• Do you know how to protect yourself if you are a limited partner?
Even a limited partnership must have a general partner. Did you
know
there is a way to create a general partner for a limited partnership
without it being you?


5 Limited Liability Partnership –
5
This is another statutory invention that should not be created or
used unless the business owners understand exactly how it should
operate.

Limited Liability Partnership (( LLP ))
Limited Liability Partnership LLP


6 Limited Liability Company –
6
• Many people have read about LLC’s and they just assume that this
will be a good form of business for them. In fact, the LLC has many
advantages, but it also has disadvantages and limitations.
• The advice of an experienced business attorney can save a
business owner from regretting a hasty decision when forming a
company for their business.

Limited Liability Company (( LLC ))
Limited Liability Company LLC


7 Corporation –
7
• A corporation can take many forms. There are many advantages
to structuring a business as a corporation, but there are also
reasons that it would not be a good idea to use the corporate form
of business.
• What are your short term and long term plans for your business?
How many owners or investors do you expect to have? Where should
it be incorporated and why? These questions should be a topic of
discussion with an experienced business attorney by any business
owner who is serious about his business.


• C Corp – the default version of a corporation.
• S Corp – an option that must be exercised by the owner of a new C
Corp within a limited period of time.
• LLC – the popular name used for limited liability companies.
• LP – the name often used for limited partnerships
• LLP – the name often used for limited liability partnerships
• GP – the name often used for general partnerships.


d/b/a – the abbreviation for a form of business known as “doing
business as”. Did you know that you have more than one decision to
make about how and where to file the papers for your d/b/a? Did you
know that you don’t have to be the owner of your d/b/a, and that you
can use a d/b/a in conjunction with another type of business entity to
allow more flexibility in your business?


• Where do you file the papers to start a particular kind of company?
• What papers do you need to file?
• Where should your business be located?
• Does it matter?
• Are you safe just reading about this on the Internet, or do you need
some real legal advice?
Too often it seems that we are contacted by a business owner who has
serious problems that could have been avoided if they had sought and
received the advice of an experienced business attorney when they
started their business.


Call Houston business attorney Lee Solomon at The Solomon Law Firm,
P.C. today to schedule a time to meet and discuss your business needs.

Houston


CONTACT THE SOLOMON LAW FIRM, P.C.
Main Office
510 Bering Drive, Suite 300
Houston, Texas 77057
Toll Free 888.777.6391
Fax to 713.358.5513


Choices For The Business Owner In Houston, Texas

Recommended

Recommended

More Related Content

Recently uploaded

Recently uploaded (20)

Featured

Featured (20)

Choices For The Business Owner In Houston, Texas