Dallas Business Formation Lawyers

Personalized Attention & Customized Solutions to Your Business Needs in North Texas

Starting a new business is an exciting and often challenging task. You will need to juggle various issues and complete certain steps before you can even open the doors. Among these tasks is deciding what type of legal structure your business will have. The type of business formation you choose is necessary at the outset, whether you are starting out with a simple DBA or forming something more complex. Some of these formations are easy and inexpensive to put together while others involve more steps.

Only a handful of business formation types exist, each with its own advantages and disadvantages. The type you choose will have a deciding factor on such matters as your personal liability, your tax liabilities, and other important aspects of your operation. As an example, as a sole proprietor, you are typically the sole person responsible for all decisions concerning your company. As a partner in a partnership, however, all decisions concerning your operation would be the responsibility of all partners. At Mullin Rybicki, we can educate you on all business formations, their pros and cons, and advise you on what would best meet your needs. We are here to get you started with the right formation to help you get your business off the ground and moving forward.

Business Formations – What Are They?

Basically, there are four types of legal structures for businesses. They consist of:

  • Sole proprietorships which are the simplest to form. This is a one-owner business done under your name or a DBA (doing business as) with you and your business as one entity. It may require a local or state business license depending on your circumstances but you will not be filing any incorporation documents. In this form, you have no protection against claims or lawsuits made against your business; your personal assets can be taken.
  • Partnerships which are the simplest business formations for co-owners. Generally, you have a partnership agreement that lays out how the business will operate and how your profits and losses will be handled. Partnerships come in two forms: general and limited. In a general partnership, the general partners have joint authority and can both be held personally liable for all business debts. In a limited partnership, the limited partners cannot be held personally responsible for business debts; only the general partners can.
  • Limited liability company which involves filing a certificate of formation with the Texas Secretary of State. This legal structure is distinct from the others in that it has the powers of a corporation as well as a partnership. Depending on how it is formed, it may be similar to a general partnership that has limited liability, to a limited partnership where all partners may be responsible for management, or to an “S” corporation without corporate ownership or tax restrictions. In an LLC, the owners are “members,” who can be people, partnerships, corporations, or other legal structures.
  • Corporations, which are also created by filing a certificate of formation with the Secretary of State. This is a legal entity whose owners are shareholders that provides limited liability protection. It is generally managed by directors although shareholders can make agreements to eliminate directors to have shareholder management. In a “C” corporation, its earnings are taxed and shareholders pay taxes on corporate dividends. In an “S” corporation, the owners take profits and losses. Corporations must file corporate tax returns, have annual meetings, and have accounting obligations.

Let Us Provide the Guidance You Need

In order to understand the intricacies of any business structure, it is best that you discuss it with a knowledgeable attorney who can apply it to your individual circumstances. At Mullin Rybicki we can ensure you understand all of the consequences of the business formation you use, especially in terms of liability, tax consequences, and state or federal requirements. We are here to provide thorough, efficient, and effective legal assistance in this most important and vital matter.

Talk to a Dallas business formation attorney about your business needs. Contact us to get started today.

What Makes Us Different?

  • Collaborative Environment

    Our entire team has unique skills and specialties, which helps the entire staff get to know you and anticipate your needs.

  • Comprehensive Service

    Running a business often leads to a variety of legal needs and challenges, and our team is willing and ready to assist you from start to finish.

  • Big Firm Experience. Boutique Firm Rates.

    We offer the substantive knowledge and skill of a large law firm without charging you the big firm prices.

  • Personalized Attention

    We provide customized strategies for each and every client, and offer the experience to implement them.

Full-Service Representation Tailored to You

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