Business Formations

Texas Business Formations

Our Dallas Business Lawyer Can Help

New business owners face many important decisions and one of the first is selecting the type of entity for their business. While the LLC is the most popular entity choice, the Texas corporation is not far behind. Our Dallas business lawyer is here to help with your Texas business formation.

Common Texas Business Entities

Texas business owners should become familiar with the different types of entities, and then coordinate with a business incorporation lawyer and tax professional to complete the business formation process. The most common business structures in Texas are as follows (click on the link below for more details):

Texas LLC

The Texas LLC is quickly becoming a popular choice of entity in Texas for all sizes of businesses. Unlike the Texas Partnership, an individual can form a single member LLC in Texas.
More Texas LLC information

Texas Series LLC

The Texas Series LLC is a new business entity that is great for real estate investors and others who desire liability protection for multiple large assets and business ventures.
More Texas Series LLC information

Texas Corporation

The Texas Corporation is one of the oldest and most popular entity choices for small businesses in Texas for several key reasons. First, the IRS allows certain Texas corporations to enjoy pass-through taxation. This can be very tax advantageous. Also, most small businesses elect to take advantage of the S Corp status.
More on Texas Corporations

Limited Partnership

Texas partnerships can be used for simple small business as well as large enterprises. The limited partnership requires two types of partners (general & limited). If the partnership is set-up and managed properly, the limited partners will have liability protection from the debts and obligations of the partnership.

General Partnership

A general partnership is created when two or more persons associate to carry on a business for profit. A general partnership operates in accordance with a partnership agreement, but there is no requirement that the agreement be in writing and there is no state filing requirement. Like a sole proprietorship, a general partnership does not require any formal action and will automatically exist if certain criteria are met. In the absence of a written partnership agreement, Texas has enacted statutes to provide an overall structure for the management and operation of the general partnership. Each individual partner, and the partnership as a separate and distinct entity, is jointly and severally liable for all debts and obligations of the partnership.

Sole Proprietorship

The simplest form of business structure is the sole proprietorship. In a sole proprietorship, a single individual engages in a business activity without formal organization. Under Texas law, a sole proprietorship has no separate legal existence apart from the sole proprietor. The sole proprietor has all the control of and responsibility for the business operation and business decisions. The sole proprietor owns all the business property as an individual but also assumes unlimited personal liability for all debts and other claims against the business. If the business is conducted under an assumed name (a name other than the surname of the individual), then an assumed name certificate (commonly referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained.

Additional Information

Business Entity Frequently Asked Questions