Forming a Texas business can be an exciting venture. However, given the complexities of the law in this area, it is important that you have legal counsel on your side at every stage of the game.
Houston business attorney Andrew Weisblatt of The Weisblatt Law Firm, LLC understands the complexities associated with forming corporations and other business entities in Texas. Our firm can address all of your legal concerns and make sure that your corporate entity starts off on the right foot.
A corporation is formed by filing a certificate of formation with the Secretary of State for the State of Texas. Once you properly form a corporation, it will act as a legal entity. Much like an individual, a corporation is capable of suing someone else and being sued by someone else. The law also views a corporation as a distinct “person.”
Structure of a Texas Corporation
All Texas corporations are structured in much the same way. A Texas corporation is usually made up of the following individuals:
- Shareholders – Shareholders serve as the corporation’s backbone. These individuals are the owners of the corporation, and each holds a certain number of “shares” in the corporation. Although shareholders have a stake in the corporation, they are not permitted to enter into a shareholder agreement that could eliminate the board of directors and allow the shareholders to manage the corporation directly.
- Officers and directors – The corporate officers and directors are the individuals who run the day-to-day operations of a corporation. The corporation’s directors comprise a Board of Directors, and there are certain regulations for voting, passing bylaws, and other corporate business. For example, in order for the Board to pass bylaws, a quorum must be present, and a certain percentage of those present must approve. Corporate directors typically include a CEO, president, vice-president, and other officers.
One significant advantage of the corporate structure is that it shields individual shareholders from personal liability. This means that, without “piercing the corporate veil,” individual shareholder-owners of a corporation cannot be held personally liable if another party decides to file a lawsuit against the corporation. However, the individual or legal entity filing the lawsuit may be able to go after assets that the corporation itself holds.
Talk to a Houston Business Attorney Today Who Can Address All of Your Questions and Concerns
Setting up any business organization, including a corporation, requires someone familiar with all of the applicable laws and regulations—both at the state and federal levels. Houston business attorney Andrew Weisblatt of The Weisblatt Law Firm, LLC, can go over your individual circumstances with you and help you determine if a corporate structure best suits your unique needs. Our office can also help you prepare and file the necessary forms and paperwork to set up your corporation in compliance with Texas law.
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.