Limited liabilities companies, or LLCs, have become an increasingly utilized business entities for entrepreneurs across a wide range of industries, and it is easy to see why. They offer many of the protections of a traditional corporation with the flexibility of a partnership. In addition, LLCs are not subject to the more onerous filing and reporting requirements to which corporations are.
Many entrepreneurs and business people wonder if they need to employ the assistance of an attorney in order to start an LLC. While there is no legal requirement to use an attorney when starting an LLC, it is highly advisable to do so. Some of the reasons for this are discussed below.
An Attorney Will Ensure Your Filing Complies with State Law
LLCs are created by state law. To establish one, you must file certain paperwork with the Texas Secretary of State’s office. Incomplete or erroneous paperwork can result in the rejection of your filing and create unnecessary delays in getting your business up and running.
A Lawyer Will Help You Establish an Operating Agreement
An LLCs operating agreement is perhaps the most important document associated with starting a business. It outlines the way in which the LLC will be organized and establishes the rights and responsibilities of the members towards each other and the organization itself. While Texas law does not require the operating agreement to be filed with the state, it is extremely important for the operating agreement to accurately reflect the agreement between the members and the way they intend that the LLC be run.
An Attorney Will Make Sure that Your Follow the Necessary Formalities to Protect Yourself from Liability
As mentioned above, one of the main benefits of an LLC is the liability protection it provides its members. This means that the members of the LLC will not be personally liable for any debts incurred by the business. This is only the case, however, if certain formalities are observed. The assistance and advice of an attorney will ensure that you follow the necessary formalities in order to protect yourself from personal liability.
Contact a Houston Business Attorney Today to Discuss Your Situation
If you are considering forming an LLC or are unsure of what business entity would best suit your needs, you should talk to an attorney as soon as you can. To schedule a case evaluation with a lawyer, call our office today at 713-666-1981 or contact us online.