When beginning a new business, there are many legal factors to take into account. The most vital decision that you can make when creating your business plan is how to legally structure the company. There are multiple ways to set up your company as a legal entity, all with their own benefits and drawbacks.
When you’re ready to begin your company, call our professionals at (214) 382-2964 for a free initial consultation to discuss the best route for your business structure in Dallas, TX.
Your Business Structure Options
As a new business, you have multiple choices in how to arrange the structure. Your company’s structure is of vital importance when it comes to financial tasks such as tax rates and obligations, legal liability, and the ability to acquire capital. For instance, while a Sole Proprietorship has optimal tax rates and breaks, the owner is completely responsible for the business’ financial contracts should the business fail. It’s crucial to speak with an advisor before setting up the legal structure of your business to ensure that you are both financially and legally covered.
Solely Owned Companies
If you will be heading the business and working alone or with very few employees, a sole proprietorship’s tax breaks and simple arrangement might be your best option. However, if you’re looking for limited personal legal obligation, a Limited Liability Corporation (LLC) or an (S) Corporation might be for you. Although more difficult to manage, these types of businesses enjoy many of the same perks as a corporation without the double-level taxes. A Corporation is another option and provides complete freedom from personal responsibility, but with a trade for higher, double-level taxes.
If you are establishing a partnership, there are more options still, such as a Limited Liability Partnership (LLP) and a Standard Partnership. Each can have both General Partners and Limited Partners, but tax laws and personal obligation are very different with each option. Keep in mind how your partners want to be involved when establishing the relationship in order to get a better idea of your prime legal structure.
No matter what type of company you are starting, your legal structure is one of the most vital decisions to make, and will undoubtedly provide direction for every corporate decision of the business to follow. Call our professionals at (214) 382-2964 to help get your business started in the right direction and help guarantee that you choose the correct business structure for your Dallas, TX business. We will provide accurate and detailed advice to help you make informed and knowledgeable decisions concerning the financial future of your business. To receive your complimentary introductory consultation, call us at (214) 382-2964 today.