When you are starting a new business, creating a corporation could be the right option in many situations. A corporation can shield you from personal liability while offering flexible options on issues such as transfer of ownership and classes of stock.
If you intend to start a new corporation, let experienced business attorney Sasha Begum help you navigate the legal hurdles you might not be aware of and handle the formal steps that must occur before this type of entity can be established. Reach out to an Alamo Heights corporation formation lawyer today to learn more.
Texas law provides many different types of business entities to choose from. While there are benefits and drawbacks to each approach, the positives of forming a corporation are significant. Because every situation is unique, it is vital to have an experienced attorney assist you with the complex process when creating a corporation in Alamo Heights.
Arguably, the biggest benefit of forming a corporation is the limited liability that shareholders face. Unlike other types of companies, corporate shareholders are generally not at risk of having creditors access their personal assets to settle company debts or obligations.
Corporations also enjoy flexibility with regard to who can own stock. There are no limitations on the types of business entities that can be shareholders, and foreign owners are also permitted.
However, there are some disadvantages to be aware of. For example, the income earned by a corporation is taxed twice before it reaches individual shareholders. Not only is the revenue taxed at the corporate level, but shareholders have to declare it as income on their federal returns.
Specific steps must happen before a corporation will be formally recognized under Texas law. In order to win state approval, an Alamo Heights attorney could assist with these technical requirements for corporation formation.
First, the company will need a name that fits specific guidelines. A new entity cannot select a name that is already in use. Furthermore, it must indicate the structure of the business by including the words or abbreviations for “corporation.”
Next, there must be a registered agent in place. This person or entity receives formal notices on behalf of the company and is their point of contact with the outside world.
Corporations also require directors at the time of formation. There can be more than one person in this role, and they typically wield significant power and control over the company. Once these steps are taken, a company can file for their Certification of Formation with the state.
The work of a business attorney in Alamo Heights does not end with corporation formation. Most businesses need ongoing legal support to ensure they remain in compliance with the law and operate efficiently.
For example, there is a requirement for companies to file annual reports each year with the Texas Secretary of State. They must also communicate with shareholders and hold an annual meeting to address any questions or issues. Over time, companies might determine that restructuring is the right approach. The team at Begum Peláez-Prada PLLC is prepared to provide ongoing assistance to corporate entities long after formation has been completed.
If you are planning to start a new business, a corporation might be the right choice for you. Formation can be complex, but you have the option of hiring legal counsel to help you navigate this process.
Let an Alamo Heights corporation formation lawyer guide you through every step of the process. Reach out immediately to learn more during a private consultation.
