How Do You Register An Llc

Selecting a Business Structure

The decision regarding business organization construction is a conclusion that a person should make, in consultation with an chaser and accountant, and taking into consideration issues regarding tax, liability, management, continuity, transferability of buying interests, and formality of operation.

Generally, businesses are created and operated in i of the post-obit forms:

• Sole proprietorship: The most common and the simplest form of business is the sole proprietorship. In a sole proprietorship, a unmarried private engages in a business activity without necessity of formal arrangement. If the business is conducted under an assumed name (a proper name other than the surname of the individual), so an assumed name certificate (commonly referred to as a DBA) should exist filed with the function of the county clerk in the county where a business concern premise is maintained. If no business premise is maintained, then an assumed proper noun document should be filed in all counties where business is conducted nether the assumed name.

• Full general partnership: A general partnership is created when two or more persons associate to conduct on a business for turn a profit. A partnership generally operates in accordance with a partnership agreement, only there is no requirement that the understanding be in writing and no state-filing requirement. If the business of the partnership is conducted under an assumed name (a name that does non include the surname of all of the partners), so an assumed name document (usually referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained. If no business premise is maintained, then an assumed name certificate should be filed in all counties where business organization is conducted under the assumed name.

• Corporation: A Texas corporation is created past filing a certificate of formation with the Texas Secretary of State. The Secretarial assistant of State provides a course that meets minimum state law requirements. Online filing of a certificate of germination is provided through SOSDirect.

  A corporation is a legal person with the characteristics of limited liability, centralization of management, perpetual duration, and ease of transferability of buying interests. The owners of a corporation are called "shareholders." The persons who manage the concern and affairs of a corporation are called "directors." Even so, state corporate law does provide for shareholders to enter into shareholders' agreements to eliminate the directors and provide for shareholder management. Choosing the all-time direction structure for your corporation is a decision you lot make with the advice of an attorney. The Secretarial assistant of State cannot assist you.

  An "S" corporation is non a affair of state corporate law but rather a federal tax election. A for-profit corporation elects to be taxed as an "Due south" corporation by filing an election with the Internal Revenue Service. Delight contact the IRS or competent tax counsel regarding the decision to exist taxed as an "Due south" corporation and the requirements for filing the ballot. This is not a matter with which the Secretary of State may assist.

• Limited Liability Company: A Texas limited liability company is created past filing a certificate of formation with the Texas Secretarial assistant of Land. The Secretary of Land provides a grade that meets minimum state law requirements. Online filing of a document of formation is provided through SOSDirect.

  The limited liability company (LLC) is not a partnership or a corporation merely rather is a singled-out type of entity that has the powers of both a corporation and a partnership. Depending on how the LLC is structured, it may be likened to a full general partnership with express liability, or to a express partnership where all the owners are free to participate in direction and all have limited liability, or to an "Due south" corporation without the buying and tax restrictions imposed by the Internal Revenue Code. Unlike the partnership, where the key chemical element is the individual, the essence of the express liability visitor is the entity, requiring for its creation more than formal requirements. 1 William D. Bagley & Phillip P. Whynott, The Limited Liability Company, §2.10, (second ed. 2d rev. James Publishing, 1995).

  The owners of an LLC are chosen "members." A member can be an individual, partnership, corporation, trust, and any other legal or commercial entity. Generally, the liability of the members is express to their investment and they may enjoy the pass-through tax treatment afforded to partners in a partnership. As a upshot of federal tax classification rules, an LLC tin achieve both structural flexibility and favorable taxation handling. Withal, persons contemplating forming an LLC are well advised to consult competent legal counsel.

  A express liability visitor tin be managed past managers or past its members. The management structure must exist stated in the document of formation. Direction structure is a determination that is made by the LLC and its members. The Secretarial assistant of State cannot requite advice about management construction.

• Limited Partnership: A Texas limited partnership is a partnership formed past two or more persons and having one or more general partners and one or more express partners. The limited partnership operates in accordance with a partnership understanding, written or oral, of the partners equally to the affairs of the limited partnership and the acquit of its concern. While the partnership agreement is not filed for public record, the limited partnership must file a certificate of formation with the Texas Secretary of State. The Secretarial assistant of State provides a form that meets minimum state law requirements. Online filing of the document of germination is provided through SOSDirect.

• Limited Liability Partnership: In order to limit the liability of its general partners, a general or express partnership may opt to annals as a limited liability partnership. The Secretary of Land provides a form for registration every bit a limited liability partnership. Online filing of the registration is provided through SOSDirect.

The information on this folio should not exist considered a substitute for the advice and services of an attorney and tax specialist in deciding on the business organization structure.

How Do You Register An Llc,

Source: https://www.sos.state.tx.us/corp/businessstructure.shtml

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