From Conception To Creation: Forming A Company

Whether it is something as simple as a small business such as a retail establishment or a larger project such as a contracting company, starting a business is an exciting endeavor. From the initial stage to the day you open your doors, you are likely to have many questions.

Pitfalls can prevail: Are there contracts to be drafted? Do you understand the lease that you are signing? Have you contacted your state to find out if the name you have chosen is available? Having the salient knowledge of an experienced business law attorney can help ensure you have all matters covered and that there are no unforeseen issues that could create costly litigation.

Types Of Companies

There are many avenues to creating a business. From sole-proprietorship to a corporation, each type of company has certain rules and regulations it must follow. While some are rather straightforward, others can be more complex. Below is a brief overview of the most common types of businesses:

Sole proprietorship: This can be something as a simple as a craft business you run out of your home, or as complex as a roofing company for the town in which you live. Sole proprietorships are the easiest to set up, but do not offer you the legal liability protection that other companies do. Generally, a person with a sole proprietorship works alone and is the only employee of the company, although others might be employed on a very part-time or occasional basis.

Limited Liability Company: Also known as an LLC, this entity is established for companies that seek greater legal protection. A sole proprietorship leaves a company owner open to personal liability, meaning that they may be sued in an individual capacity, putting their own assets, such as car and home, on the line for any judgments. An LLC formation allows the owner certain legal protections against these kinds of judgments.

General Partnerships: A business that includes several owners who share all profits, losses, and liabilities. Any of the partners can incur losses on behalf of the business, as well as enter into contracts for the business as a whole.

Corporations: A corporation acts a pseudo-person. Liabilities that the corporation incurs, as well as profits, belong to the company, not to sole owners or partners. Corporations can be either S or C, and are created as such based on tax concerns and stock choices.

Whether you are looking to form a new company, are selling a business or need help negotiating transactions in one you currently own, the lawyer at the Law Office of Ramon Vega III, PLLC, located in McAllen and Austin, Texas, can offer the help you seek. Contact us today at 956-664-8006. Se Habla Español!