Creating a limited liability company (LLC) in Texas has several advantages. This is true if you intend to open a small business or if you are changing the current structure of your small business. Potential benefits of structuring your business as an LLC include asset protection and tax advantages. LLC’s share some of the characteristics of corporations, as well as partnerships.
If you are interested in learning more about starting an LLC or changing your business structure, Houston business attorney Andrew Weisblatt of The Weisblatt Law Firm, LLC, may be able to help you prepare and file the necessary documents.
Some of the benefits associated with LLC’s include the following:
- Protection of business name – When you choose to start an LLC or restructure your existing business in that fashion, no other company in the State of Texas can use your LLC’s name. Therefore, the LLC structure protects both your company’s image and its reputation.
- Tax benefits – Operating a Texas business as an LLC has various tax benefits. For example, at tax time, an LLC can write off all of its business expenses and operating costs. Owners can deduct these amounts from the business’s gross income. Moreover, as LLC assets depreciate over time, these company assets may also be deducted.
- Personal asset protection – One of the primary benefits of a Houston LLC is that it protects the LLC owners (also known as “members”) from personal liability. In the event a lawsuit is filed against the LLC, the person or entity suing can go after the business assets only. He or she cannot go after the members’ personal assets.
- Support from the Secretary of State – When you form and register your business as an LLC in the State of Texas, the State provides legal support in some situations. For example, LLC’s in Texas receive protection under various state statutes, including the Texas Miscellaneous Corporation Laws Act (TMCLA) and the Texas Business Corporation Act (TBCA).
- Profit choices – LLCs in Texas have the flexibility to opt for a federal tax structure, which operates either as a partnership or as a corporation.
- Lack of record keeping – Texas law does not impose record-keeping requirements on LLC’s. Although corporations must keep all records and minutes from meetings, LLC’s in Texas are not required to do so.
Contact a Houston Business Attorney Today
The very purpose of a limited liability company is to restrict—or limit—legal liability for all of its member-owners. The requirements for forming an LLC can be tedious, and you want to make sure that you properly register with the State of Texas in order to reap all of the legal benefits available.
If you are planning to form an LLC in Texas or restructure your business as an LLC, Houston business attorney Andrew Weisblatt of The Weisblatt Law Firm, LLC, can help you prepare all of the necessary paperwork and legal filings.
To schedule a free consultation and case evaluation with a Houston business attorney, please call us today at (713) 352-0847, or contact us online.