Let Our Dallas Attorneys Help You Select The Right Business Entity For Your Needs
Many businesses falter because they are not built on the right foundation. These limitations and vulnerabilities are only revealed as the enterprise grows and changes, and the owners encounter external threats and internal conflicts.
The Dallas law firm of Palmer Lehman Sandberg, PLLC, provides solid guidance for forming or reorganizing business entities. Our business law attorneys assist with all facets of entity selection and ownership agreements. We help clients anticipate potential problems, consider personal liability and tax exposure, and make sure that partners and shareholders are all “on the same page.”
Which Business Structure Is Appropriate For Your Startup?
There are tandem concerns in the choice of business entity and the governing agreement among the stakeholders. Our knowledgeable lawyers will walk you through the key considerations for choosing the underlying structure of the business. We have helped clients form every type of entity and companion agreement, including:
- Limited liability companies (LLCs) and operating agreements
- Corporations (S-corp or traditional C-corp) and shareholder agreements
- Limited partnerships or limited liability partnerships (LLPs) and partnership agreements
- Family limited partnerships (FLPs)
- Sole proprietorships
We also counsel doctors, dentists, accountants, lawyers and other licensed professionals on business formation and startup matters. We can explain the merits and limitations of organizing as a professional corporation (PC), professional association (PA) or professional limited liability company (PLLC).
A Firm Offering Clear Direction And A Shared Vision
The majority of new businesses are formed as limited liability companies. The LLC offers flexibility, more informal administration and other advantages over a corporation, but it is not necessarily the most suitable entity for your business. Our attorneys will help you make an informed choice about entity selection in terms of your personal goals, risk tolerance and investment, and in conjunction with the operating, shareholder or partnership agreement and the goals of the business and co-owners.
Frequently Asked Questions About Business Entity Selection
It is important to gather as much information as you can about your business options so that you can make informed decisions. Here are the answers to some important questions:
Do I need a Dallas-based registered agent for my Texas LLC?
When forming a Texas LLC, you do not have to have a Dallas-based registered agent. Texas LLCs are required to maintain a registered agent with a physical street address in Texas. The agent can include a Texas resident, a Texas business entity or a professionally registered agent service in Texas who can be contacted during normal business hours to receive legal documents, such as lawsuits or state notices.
Some Texas LLCs do use Dallas agents, especially Dallas-based businesses. Dallas agents may be used because they are faster at handling legal documents, are conveniently located in the area and can provide superior privacy.
It helps to reach out to an experienced Dallas business attorney to talk about your options. The attorneys at Palmer Lehman Sandberg, PLLC, can help you determine whether a Dallas-based registered agent is right for your LLC.
PLLC versus PC: Which is better for a Dallas-based professional practice?
Many professional practices in Dallas and across Texas are Professional Limited Liability Companies (PLLC). PLLCs are often best for doctors, dentists, lawyers, accountants and other licensed professionals. Licensed professionals often find that PLLCs offer flexible management structures, pass-through taxation and personal asset protection from business debts. However, that does not mean that PLLCs are perfect. Licensed professionals may still be liable for professional negligence and a PLLC must be approved by the relevant Texas licensing board.
Professional Corporations (PC) are often used by larger Texas practices and businesses seeking formal corporate structures. PCs often support long-term growth and larger corporate frameworks. However, there are often more formalities when structuring a PC, higher taxes and less flexibility than PLLCs.
Our attorneys can help strategize whether a PLLC or PC is better for a Dallas-based professional practice.
What is the difference between an S Corp and a C-Corp in Texas?
The difference between an S Corp and a C-Corp in Texas often comes down to the way that federal taxes are handled and the company’s ownership structure.
Many Dallas small business owners use the S Corp structure to reduce self-employment taxes and federal corporate income tax. High-growth and investment-focused companies typically use C-Corp structures when seeking venture capital and are planning to reinvest profits.
Learn More About Entity Selection And Startup – Contact Us Today
We counsel entrepreneurs, professionals, owners and executives in all industries, serving the Dallas-Fort Worth Metroplex and North Texas. Call us at 214-242-6444 or contact us online to arrange a consultation with our Dallas business entity selection attorneys.
We offer convenient office hours, flexible appointment times and reasonable fees. Visa, Mastercard and Discover are accepted.