Houston Corporate Formation Attorney
Helping Businesses with Every Aspect of Entity Formation
Choosing the right business entity is critical when establishing a new business. The path you choose significantly influences your future success. However, this pivotal decision is just the beginning. Engaging the services of a skilled corporate formation lawyer becomes essential as they expertly guide you through the subsequent crucial phases.
Depending on the chosen entity, the prosperity of your business hinges on developing well-structured bylaws, an operating agreement, or a company agreement. These meticulously crafted written agreements hold the utmost importance in ensuring your business’s seamless operation and success.
According to reports, Texas is in the top five states for startup activity and entrepreneurs in recent years. The choice of business entity is among the most important decisions facing a new business, and it can have significant implications, ranging from tax issues to exposure to personal liability. There are several business entities from which to choose in Texas, all of which have different benefits and drawbacks.
Additionally, while some business entities require significant legal formalities to create and manage, others may exist without filing documentation with the state, and they may even create the business unintentionally. As a result, anyone considering creating a business entity must discuss their options with an attorney who knows the various options available under Texas law.
Houston business lawyer Andrew Weisblatt helps many business owners start from scratch or change the type of business they are already running. The Weisblatt Law Firm, PLLC, works with companies of all types and sizes, from one-man operations to large corporations. Choosing and implementing the right corporate structure for your business is critical to its success.
Call Weisblatt Houston corporate formation attorney today at (713) 666-1981 to discuss your options regarding corporate formation and learn how we can assist you.
Why Choose Weisblatt Corporate Formation Attorney?
In the business world, corporate formation plays a crucial role in shaping the foundation and future of a company. Establishing a business requires navigating complex legal procedures and compliance requirements. Choosing an experienced and knowledgeable corporate formation attorney is paramount to ensure a smooth and successful incorporation.
Here are reasons why you should choose Weisblatt Law Firm, PLLC, for your corporate formation needs.
- Compliance and Risk Mitigation: Navigating the complex landscape of corporate compliance and regulations can be daunting for business owners. However, failure to adhere to legal requirements can lead to severe consequences, including financial penalties and legal liabilities. Our corporate formation lawyers are well-versed in state and federal regulations, minimizing non-compliance risk. We proactively address potential risks and ensure your company’s structure and operations align with all relevant laws, safeguarding your business from legal troubles in the future.
- Extensive Legal Expertise: Our corporate formation attorneys possess a wealth of legal expertise and experience in corporate law. Our team of seasoned attorneys has handled numerous corporate formation cases for a diverse range of businesses, from startups to large enterprises. This extensive knowledge allows us to provide customized legal solutions tailored to your business needs, ensuring your company’s structure is optimized for success.
- Tailored Approach to Corporate Formation: Every business is unique, and a one-size-fits-all approach to corporate formation won’t suffice. Our corporate formation attorney understands this, and our attorneys take the time to thoroughly assess your business objectives, long-term goals, and risk tolerance before recommending the most suitable legal structure. Whether you’re considering forming a Limited Liability Company (LLC), a Corporation, a Partnership, or any other entity, we will guide you through the decision-making process to ensure you make the best choice for your business.
- Proactive and Responsive Communication: Effective communication between clients and their corporate formation attorney is key to a successful relationship. We prioritize proactive and responsive communication with our clients, keeping them informed at every stage of the process. This transparency fosters trust and ensures that clients clearly understand the proceedings and can make well-informed decisions.
Texas Businesses Have Various Options
The type of business entity that best suits your situation depends on various factors, including the type of business you wish to open, the number of people involved, whether or not you plan on issuing securities, financing options, and long-term plans in terms of growth. Some of the Texas business entities that are potential options include:
- Sole proprietorships – Sole proprietorships involve a single individual engaging in some business operation requiring no formal organization. However, a sole proprietor doing business under a name other than their own must file an assumed name certificate with the county clerk’s office. Sole proprietors enjoy pass-through taxation and file as self-employed on their personal returns. Generally, sole proprietors are personally liable for all of their business debts and liabilities, as they are not separate legal entities from their business. This means creditors or injured parties can come after a sole proprietor’s home or personal savings to satisfy a company debt.
- Partnerships – A partnership involves two or more people engaging in business for profit and does not have formal filing requirements. Like sole proprietorships, partnerships use pass-through taxation and do not provide their members with any protection from personal liability for business debts.
- Corporations – A corporation is a legal entity distinct from its owners and created by filing a certificate of formation with the Texas Secretary of State. Management of corporations comes from boards of directors, and their shareholders own them. One of the main benefits of conducting business through a corporation is that the corporation will generally shield its owners from personal liability for business debts. However, corporate owners are often double-taxed.
- Limited Liability Companies – Limited Liability Companies (LLCs) are popular business entities that owners have increasingly chosen in recent years. An LLC combines the flexibility and taxation of a sole proprietorship or partnership with the liability protections afforded by a corporation. Like a corporation, an LLC is created by filing a certificate of formation with the state.
Some business entities require no formal steps for formation. Some require filing paperwork, and others require ongoing commitments to reporting, holding meetings, and abiding by corporate rules. In some cases, it is the right decision to incorporate even though there are greater obligations to the state. For other owners, they can benefit more from the structure of an LLC and enjoy the less stringent filing requirements.
The Weisblatt Firm, PLLC will carefully review your options for your corporate structure, including the possible benefits and drawbacks of each. We want your business to start on the right foot, so we want to ensure your corporate structure provides all the necessary protections with no unnecessary burdens. Once you select the right entity type, we will ensure you complete every step of the formation process.
Whether you already have an entity in mind or have no idea which one is right for you, call today so we can start the conversation and begin the process of making your business dreams a reality.
How Our Corporate Formation Lawyers Can Help You
As an entrepreneur, you’ve undoubtedly made significant sacrifices to bring your business idea to life. Protecting your new venture and innovative concept calls for the expertise of a highly skilled and experienced Houston corporate formation attorney who understands the intricacies of various Houston businesses, their respective industries, and the applicable laws and regulations.
Our team has a wealth of knowledge beyond merely helping with entity formation and registration; we are committed to providing comprehensive protection against potential litigation, contract disputes, and employment-related issues that may arise in the future.
When you choose our law firm, you gain access to professional analysis that empowers you to make well-informed decisions and receive sound counsel on critical matters, including:
- Selecting the most suitable business entity that aligns with your industry, objectives, and governance structure.
- Establishing vital corporate formalities such as bylaws and meeting minutes.
- Facilitating financing and asset acquisition.
- Exploring franchising opportunities.
- Structuring business transactions effectively.
- Defining the rights of members or shareholders.
- Devising a robust business succession plan.
- Addressing tax implications with prudence.
Furthermore, our expertise extends to drafting operating agreements, resolutions, overseeing corporate governance, and ensuring compliance. Many companies that neglect the guidance of business formation attorneys often expose themselves to the perils of litigation and financial obligations.
For instance, partnerships often overlook the significance of developing comprehensive partnership agreements, leading to reliance on verbal agreements when disputes arise. Having litigated numerous business disputes and assisted countless companies with entity formation, our attorneys understand the risks your new business may encounter. Through careful planning, our business formation lawyers strive to prevent expensive risks from hindering your path to success.
The Formation Process
Choosing a business entity and filing the initial paperwork with the state are only the first steps in forming your business. While a business may exist on paper, beginning your operations in the best legal position takes many additional steps. Some people simply begin operating, only to soon experience roadblocks or learn they face liability for non-compliance with all legal requirements. Business lawyer Andrew Weisblatt can ensure you cover all your bases so you are heading toward success from the very start.
Some legal services that are part of business formation for startups can include:
- Drafting Operating Agreements – Even though the SOS does not require every type of business entity to have an operating agreement on file (such as partnerships or LLCs), it is essential for any multi-owner enterprise to have a well-negotiated and professionally drafted operating agreement. These contracts can eliminate disputes regarding management and finances and serve as a road map for resolving any future disputes that may arise.
- Drafting Buy-Sell Agreements – This is another important contract for multi-owner companies. This contract specifically addresses what will happen if one business owner must give up their interests, such as in a divorce, bankruptcy, retirement, or death. This agreement helps protect the integrity of business ownership while minimizing operational interruptions.
- Obtaining Permits and Licenses – Many businesses need certain permits and licenses before they can begin operations. This is especially true if you have a brick-and-mortar location, as you will likely need zoning and land use permits. Food service companies will need health permits; many professionals require special licenses before working in a particular field. We can help you identify any necessary permits and licenses you need.
- Purchasing Insurance Policies – Companies should have the necessary insurance coverage for their specific operations. This may include policies for professional liability, property insurance, home-based businesses, product liability, company vehicles, workers’ compensation, business interruptions, and general liability insurance. When you have the right insurance, a mishap or hiccup will not mean putting your company on the line.
- Capital and Financing – The business entity you choose should consider your financing goals. If you want to sell ownership shares for funding, you will need to form a corporation. Angel investors typically focus on C corporations, as well. Other financing methods for LLCs or partnerships may be suitable, including business loans, informal loans, grants, peer-to-peer lending, and more.
- Intellectual Property Protections – Many owners build businesses around a particular product or software. In these situations, you want to ensure that you obtain patents (or at least provisional patents) to protect your ideas and inventions. Furthermore, as you build your brand, you want your business to be identifiable by its name, logo, slogan, or other branding tools. While you can have minimal trademark protections automatically, you can obtain greater ownership rights by registering your trademark. You also want to consider whether your company has any trade secrets or whether you should have certain parties sign non-disclosure agreements (NDAs).
- Developing Company Policies – Developing and implementing company policies is a good idea if you plan to have employees or even multiple owners. Policies can address many issues, including hours of work, conduct codes, anti-discrimination and harassment, disciplinary action, benefits, compensation, and more.
Each business will have its own path to begin operations, and corporate formation is vital to this process. Despite having a brilliant idea, many people fail to start their business because they do not know where to begin. Allow The Weisblatt firm to help guide your startup to success.
Contact a Houston Corporate Formation Lawyer Today To Schedule a Free Consultation
The choice of business entity is an extremely important decision that can significantly impact a business venture’s day-to-day operations and overall success. As a result, anyone making this important decision must discuss their options with an experienced Houston business attorney before making any final decisions.
It is also important to form your business with the guidance of a knowledgeable business lawyer. Each entity has its requirements, and you do not want to risk difficulties with the Secretary of State in the first weeks or months of operations. Our law firm regularly walks clients through the entire corporate formation process, ensuring compliance each step of the way.
To schedule a free consultation with attorney Andrew Weisblatt, call The Weisblatt Law Firm, PLLC, today at (713) 666-1981 or send us an email through our online contact form available.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
