Opening a Business in Texas
Starting a business in Texas is a big step for anybody. Sometimes it is a decision to quit one’s job and embark on your own journey. Other times, your new venture started as a hobby that grew into a business. Whatever the case, there are certain Texas legal matters that should be considered.
Texas business attorneys will usually advise that you need to open a business entity. The primary choices are a Texas limited liability company, Texas corporation, Texas S-corporation, or Texas limited partnerships. The choice will be dependent upon your business’s composition, business purpose, and business goals. They types of legal documents required will be determined by the type of business entity that you, your CPA, and your Texas business attorney deem best for your business.
When speaking to your Texas business attorney, be sure to have the relevant information handy. For instance, whether your company will have partners is an important consideration. Another important consideration is the amount of investment contributed to the company, the percentages of the partners, if any, and the priority of distribution to the partners.
Of course, it is also important to know whether your business will have a physical location. If so, then you will need to either buy property or lease property. Many Texas business attorneys that specialize in starting new businesses also work with Texas real estate contracts if the company will buy property or Texas commercial leases if the company will be leasing space.
It is paramount to consider exit strategies, as well, and not just the company’s exit strategy, but also possible exits of partners. Many Texas business attorneys will implement provisions into the legal business documents concerning separations of partners. The separation could be from death, divorce, withdrawal, or a sell of interest (which is often prohibited). These provisions are likely called buy/sell provisions.
As earlier mentioned, it is important to contact a Texas business attorney when opening a new business.
The Law Office of Robert Newton, PC is a law firm located in Frisco, Texas, that practices in the area of business, real estate, and estate planning. Please feel free to contact the firm for a consultation. The above information was provided for information purposes only and not as legal advice.