Corporate & Business Matters

How do I set up a business in Arlington, TX?

At Jackson, Landrith & Kulesz, PC, we listen to your concerns and provide advice on forming, reinstating, or dissolving a business. When forming a business, it is important to protect your personal assets as well as your business. There are several business structures to consider:

• Sole Proprietorship: A simple business structure where a single individual operates a business and owns all assets.  The owner is personally liable for business obligations/debts. Taxes are paid by the sole proprietor’s personal tax return. Transfer of business is easy.
• Partnerships: When two or more people associate to run a business for profit. Operates in accordance with a partnership agreement.  Owners are personally liable for business obligations/debts. A general partnership requires an annual partnership income tax return that is separate from the partners’ personal returns. Transfer of ownership requires the consent of all partners.
• C Corporation:  A legal entity where owners purchase shares of the business and are called shareholders. The business is managed by the directors. Corporations are characterized by limited liability (owners are not responsible for business obligations), and ease of transferability of ownership interests. A-C Corporation is taxed at a higher rate than an individual. Shareholders are not taxed personally for profits, however, they do pay personal taxes on salaries and/or dividends. Paperwork required includes initial filing and annual minutes of the directors and shareholders.
• Limited Liability Corporation (LLC): An entity that has characteristics of both a corporation and a partnership.  Owners are called members and can be an individual, partnerships, corporations, trusts, and any other legal or commercial entity.  Members’ liability is limited to their investment and taxes are passed through to the members.
• Professional Corporation:  A corporate formation for licensed professionals such as attorneys, architects, engineers, public accountants, and physicians.  A Professional Corporation does not insulate a professional from personal liability for his or her own negligence or malpractice but it does insulate them from being personally liable for the negligence or malpractice of other owners.
• Joint Venture: A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific project or task. Each party is responsible for profits, losses, and costs associated with that venture.  It is important to carefully draft the Joint Venture Agreement and include the objectives of the Joint Venture, the initial contributions of partners, the management of daily operations, and the allocation of profits and losses.

Our attorneys can help you choose which type of entity works best for your situation. We can then prepare and file all of the necessary documents to legally form your business. 

Contact our office today to discuss your concerns in structuring your business.