You may have a brilliant idea, new product, or improved upon service that you are ready to launch into the market; however, without setting up your business correctly, you may not have as much success as if you chose the correct entity, such as a limited liability company (LLC), partnership, S corporation, non-profit, or another structure that meets your needs. Making the correct business entity choice in Texas is essential to your company’s growth and success. 

Prior to making an entity choice for your company, it is critical to look at other pieces of the business such as:

  • The anticipated size of your business and how many employees you will have
  • The roles investors will have and from where revenue streams will come
  • The structure of management and how you want to manage your company
  • Business succession plans, exit strategy, or buy-sell agreements

By identifying these pieces to your puzzle, you will be able to determine if the puzzle pieces fit together so that you (with the help of an Austin business attorney) can choose the best entity for your new business. A lawyer who advises business owners on choice of entity may also ask you additional questions about the company to determine the appropriate entity under which your business should operate. Some questions you may be asked include:

  • How many owners are there?
  • Who will be the members, managers, and directors involved in daily operations? 
  • With whom will your company be doing business?
  • What are the business’s liability limits?

By asking these questions, among others, a Texas business attorney can help you choose the correct entity and walk you through the pros and cons of business structures, such as S corporations, LLC, limited liability partnerships (LLPs), non-profits, and more.

At the Posey Law Firm, our Austin business lawyers advise entrepreneurs and new business owners daily on the contractual, financial, and legal issues surrounding starting a business, and we work directly with startup companies to ensure the best entity choice for the business’s goals and needs. For your business entity choice questions in Texas, call the Posey Law Firm at 888-269-1962 or locally at 512-646-0828 to learn more today.