If you are in the early days of starting your business, there are many factors you need to consider with regard to how you want your business to be established. At Wilson Brown, PLLC, we take the time to understand you and your business so we can suggest the most beneficial incorporation for your company.
Before you decide on how you want to establish your company, let’s take just a few moments to review the most common forms of incorporation.
As the most familiar business entity, the C-Corporation requires you, the business owner, to file a certificate (usually in the form of a charter or articles of incorporation) with the Secretary of State here in Texas. A C-Corporation typically requires a board of directors or other shareholders.
An LLC, or limited liability corporation, is far and away the most popular option for businesses that are going to be more closely held. While a certificate must be filed with the state, the general guidelines for the operation of the business is contained in an operating agreement that is accepted by each of the members of the business.
A hybrid of a C-Corporation and an LLC, an S-Corporation provides the ability to pass its tax items through to its shareholders. However, tax rules applicable to an S-Corporation offer very limited flexibility in the way they are allocated. An S-Corporation also places a limitation on who may be a shareholder in the company and how many shareholders your company can have.
In addition to the three entity formation types above, limited partnerships, general partnerships, and limited liability partnerships are options to consider. Each of these are a little more specialized and counsel with an experienced business attorney is recommended in determining if they will work for you.
To schedule a no-hassle, convenient consultation, contact us online or call our San Antonio office at 1-210-787-4637.