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Choosing the right foundation for your new business

On Behalf of | Nov 21, 2018 | Business Formation |

The business structure you use for your new Texas startup impacts many facets of the organization. At Palmer & Manuel PLLC, we often provide expertise to clients who wish to choose the right business structure of their startup.

When selecting the type of business entity, the formality of the operation, management, record-keeping, tax and ownership interests are among the top considerations. While there are many options to choose from, the four business structures listed below are among the most common for new companies.

Sole Proprietorship

An individual can own and operate this type of entity. It is the most straightforward business structure, as it does not require formal organization and you have complete control of its operation. The primary requirement is filing a DBA certificate with the county clerk’s office in all counties where business is conducted if there are no official premises.

General Partnership

In this organizational structure, two or more people agree to operate a business. There is no state filing requirement. However, you must register a DBA certificate with the county where the company resides if the assumed name does not include all partners’ surnames.

Limited Liability Company

A certificate of formation indicating that your new entity is an LLC must be filed with the Texas Secretary of State. This structure incorporates benefits of both a partnership and a corporation. Depending on your specific needs, it may require the more formal requirements of a corporation, as it is a legal entity.


This structure enables organization founders to remain separate from the legal entity. The primary benefit is that the founders have protection against personal liability. Centralized management and transferable ownership interests are among the features that differentiate it from other types of organizations.

Choosing the right foundation for your new business can reduce limitations and exposure to legal issues as it grows and evolves. It can help your organization thrive when others falter. Visit our webpage for more information on this topic.