Business representation includes serving businesses in various capacities, such as at the time of formation or during transactions. Businesses need effective legal advice to succeed in a competitive environment and to conduct transactions that ensure the strength of a company. Skilled representation is also needed by businesses during the drafting of contracts and in the handling of employment issues, such as drafting employee handbooks, policies and procedures.
When starting a new business, one of the most significant decisions you must make is determining the type of business entity structure for the new endeavor. The Texas Secretary of State website has useful information regarding the types of permissible business entities, including the following:
- Sole proprietorship
- General partnership
- Corporation (S-corporation)
- Limited liability company (LLC)
- Limited partnership
- Limited liability partnership (LLP)
Each of these commercial structures has their own advantages and disadvantages. The type of business entity you select will have lasting legal liability and tax implications. For tax purposes, both LLCs and S-corporations avoid double taxation, since the taxes for the business are passed to the shareholders. On the other hand, LLC owners are considered self-employed, so they must pay income taxes. Meanwhile, for an S-corporation, only employer-owners' salaries are subject to a self-employment tax. The various business entities also differ in terms of who may hold an interest in the entity, who is protected from liability, and how profits may be divided.
Our experienced business attorneys will assist you in determining the best type of entity for your business. We will also assist you preparing the necessary entity formation documents, including shareholder and operating agreements, purchase agreements, contracts and leases, and employee agreements, and oversee the filing of the documents with the Secretary of State.
Businesses conduct transactions on a regular basis. This typically demands that complex contractual instruments be used to orchestrate the transaction. These documents must be drafted to protect a company's interests, limit liability, and ensure that a business is protected if any disputes arise. Moreover, to protect a business, tax considerations need to be weighed to ensure that every transaction makes financial sense for a company. All of these considerations are best evaluated by counsel with a strong understanding of the needs of your business and with experience representing businesses in a variety of transactions.
If you are seeking experienced legal counsel regarding the formation of a new business or a business transaction, contact Wigington & Dankesreiter, L.L.P. for a consultation regarding your specific legal matter.