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There are six main types of business structures. They are Limited Liability Company (LLC), Limited Liability Partnership (LLP), Sub-Chapter S Corporation, general partnership, and sole proprietorship. Each type has its own benefits and drawbacks. An entrepreneur can start off by using a particular business formation and change to a different form in future. The founders of a startup can opt for a Limited Liability Company. They will also need to make a decision on the state of incorporation. They can settle on Texas. There are a number of steps that are associated with Texas LLC formation Houston TX.
Finding a common mission and vision is a core step in LLC formation. Most startup founders normally ignore this step and they end up regretting. If shareholders do not have a common vision, the chances of failure will be high. With a common vision, there will be laser light focus on the goals of the company. This is the kind of focus required for success.
A limited liability company needs to have a name. This will be used in identifying the company. The name that has been identified will have to be registered with the Registrar of Companies in Houston, Texas. A name that is already being used by another LLC cannot be used. A unique business name is required before the registration exercise can take place.
The company name will be present on all the documents of the company. It will be clearly indicated at the entrance of the office. If the company is manufacturing products, all the products will bear the company name. A name search process will help in identifying a unique name. A new company cannot use the name of an existing company in Texas.
Finding a registered agent is a crucial step. The agent will receive correspondence on behalf of the shareholders. Actually, the shareholders can be too busy to deal with the day to day running of the company. The agent needs to have an address where all the correspondence will be forwarded to. This must be a physical address and not a P. O. Box address.
Creating the articles of organization is another step. The shareholders can draft this themselves. Alternatively, they can enlist the help of an attorney. This document will contain the basic information of the company. The name of the company as well as its primary address should be indicated. The articles of organization should also state how the company will be managed.
An operating agreement can be drafted. Not every company has this. However, it is highly recommended to have an operating agreement for future dispute resolution. Even if shareholders have a shared and common vision, they can easily disagree in future. After all, they are just human beings. The ratio of profit/loss division should be stated by this document.
It is not easy to form a Limited Liability Company. There are a number of steps involved. Some documents also have to be drafted. Starting an LLC also requires shareholders to raise a significant amount of capital and to pay an incorporation fee. However, there will be limited liability protection. This will protect the personal assets of shareholders from creditor claims and lawsuits.
Finding a common mission and vision is a core step in LLC formation. Most startup founders normally ignore this step and they end up regretting. If shareholders do not have a common vision, the chances of failure will be high. With a common vision, there will be laser light focus on the goals of the company. This is the kind of focus required for success.
A limited liability company needs to have a name. This will be used in identifying the company. The name that has been identified will have to be registered with the Registrar of Companies in Houston, Texas. A name that is already being used by another LLC cannot be used. A unique business name is required before the registration exercise can take place.
The company name will be present on all the documents of the company. It will be clearly indicated at the entrance of the office. If the company is manufacturing products, all the products will bear the company name. A name search process will help in identifying a unique name. A new company cannot use the name of an existing company in Texas.
Finding a registered agent is a crucial step. The agent will receive correspondence on behalf of the shareholders. Actually, the shareholders can be too busy to deal with the day to day running of the company. The agent needs to have an address where all the correspondence will be forwarded to. This must be a physical address and not a P. O. Box address.
Creating the articles of organization is another step. The shareholders can draft this themselves. Alternatively, they can enlist the help of an attorney. This document will contain the basic information of the company. The name of the company as well as its primary address should be indicated. The articles of organization should also state how the company will be managed.
An operating agreement can be drafted. Not every company has this. However, it is highly recommended to have an operating agreement for future dispute resolution. Even if shareholders have a shared and common vision, they can easily disagree in future. After all, they are just human beings. The ratio of profit/loss division should be stated by this document.
It is not easy to form a Limited Liability Company. There are a number of steps involved. Some documents also have to be drafted. Starting an LLC also requires shareholders to raise a significant amount of capital and to pay an incorporation fee. However, there will be limited liability protection. This will protect the personal assets of shareholders from creditor claims and lawsuits.
About the Author:
To get assistance with your Texas llc formation Houston TX CPA is at your service. Contact this certified professional accountant now via http://www.znbcpa.com/accounting-services.
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