There are various types of business structures. They include sole proprietorship, general partnership, limited liability company (LLC), limited liability partnership, C Corporation, and Sub-chapter S corporation. An entrepreneur has to make a decision on the kind of structure to opt for. He can settle for Limited Liability Company. If he is in the US, he will need to decide on the state of incorporation. This can be Texas. Each state has its own unique rules and regulations relating to incorporation. There are steps that have to be followed in relation to Texas LLC formation Houston TX.
Finding a common vision is a vital step in LLC formation. A company needs to have mission and vision statements. Shareholders have to agree on where they want the company to be after a particular period of time. If shareholders have different visions for the company, success will be an illusion. A common vision is required even if shareholders have different personalities.
Creating a company name is another important step. If a group of like minded individuals have come together and they have agreed to start a company and they have a common mission and vision, then they will need to name their company. This is the name that will be used in the day to day business operations of the firm.
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 for a company is an important step. There are thousands of registered agents in Houston. A registered agent will receive government forms and notices on behalf of the shareholders. He needs to have a physical address. A P. O. Box address cannot be used for this purpose. A registered agent must be someone based in the state of incorporation.
Articles of Organization have to be created. Every shareholder must be involved in this step. The Articles of Organization is a simple document. It has all the basic information about an LLC. The name of the company will be indicated. Mission and vision statements will also be listed. This document will also contain physical address and shareholder names.
Another document to be drafted is operating agreement. This will have information on the operational aspects of the company. If an operating agreement is lacking, disagreements will be common. The shareholding of each shareholder will be clearly specified. The process of dispute resolution must be indicated. How to share profits and losses of the company must be clearly explained.
There are pros and cons associated with LLC formation. Limited liability companies enjoy the benefit of limited liability. That means that a shareholder cannot be held individually liable for the debts of the company. For the case of partnerships and sole proprietorships, there is unlimited liability because the business and the business owners are one single entity. Companies also have tax benefits.
Finding a common vision is a vital step in LLC formation. A company needs to have mission and vision statements. Shareholders have to agree on where they want the company to be after a particular period of time. If shareholders have different visions for the company, success will be an illusion. A common vision is required even if shareholders have different personalities.
Creating a company name is another important step. If a group of like minded individuals have come together and they have agreed to start a company and they have a common mission and vision, then they will need to name their company. This is the name that will be used in the day to day business operations of the firm.
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 for a company is an important step. There are thousands of registered agents in Houston. A registered agent will receive government forms and notices on behalf of the shareholders. He needs to have a physical address. A P. O. Box address cannot be used for this purpose. A registered agent must be someone based in the state of incorporation.
Articles of Organization have to be created. Every shareholder must be involved in this step. The Articles of Organization is a simple document. It has all the basic information about an LLC. The name of the company will be indicated. Mission and vision statements will also be listed. This document will also contain physical address and shareholder names.
Another document to be drafted is operating agreement. This will have information on the operational aspects of the company. If an operating agreement is lacking, disagreements will be common. The shareholding of each shareholder will be clearly specified. The process of dispute resolution must be indicated. How to share profits and losses of the company must be clearly explained.
There are pros and cons associated with LLC formation. Limited liability companies enjoy the benefit of limited liability. That means that a shareholder cannot be held individually liable for the debts of the company. For the case of partnerships and sole proprietorships, there is unlimited liability because the business and the business owners are one single entity. Companies also have tax benefits.
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