Texas is one of the most popular states for small business. One reason is that there is no income tax. But another one is that Texas offers an asset protection vehicle called the Texas limited liability company which offers many benefits and advantages for operating a Texas business. As a business owner, all of these benefits are important and are or will become relevant when you launch and operate your venture in Texas.
The greatest advantage of a Texas LLC is limited liability protection. Without the use of an LLC, a business is run as a sole proprietorship and in this case, the owners are completely and wholly responsible for all the obligations of the business including any liability resulting from lawsuits in the future.
But the Texas LLC protection takes this sole proprietor risk away as long as your Texas LLC is properly formed and used to operate a business. This is a huge advantage and makes it a no brainer if you are deciding whether to use one. The costs to form and maintain one is so low compared to the potential value you can measure of keeping your personal assets protected. In today's world where people sue for anything and small business lawsuits are an epidemic, this is an essential protection you need for business.
A second benefit of using this kind of vehicle for your business is that the Texas LLC is an official entity and the use of one automatically distinguishes you from all the non-legal entity businesses out there. Potential customers view official legal entity businesses as more trustworthy and professional so this can help with getting your business started and obtaining customers.
A third benefit relates to federal income taxation. A Texas LLC can choose whether it wants a single layer of pass through taxation or to be taxed as a corporation. There are no requirements or conditions to either choice. The ability to avoid the double taxation of a C corporation without having to worry about meeting a list of requirements is one reason the Texas LLC is the most common choice for small business in Texas.
A fourth benefit is that a Texas LLC is quite simple to operate and offers the most flexiblity when it comes to management. Unlike a Texas corporation, there are no legally required formalities or management requirement. Actually, the Texas laws allow the members to decide amongst themselves how exactly the business will be managed and operated.
These are great features for the small business owner because each business is different and has different goals, objectives and concerns. Smaller and simple businesses can focus more on their businesses without having to worry about unnecessary compliance requirements while larger and more complex businesses can add the necessary requirements to meet their business needs.
When you form a Texas LLC, you are taking the most important step for you and your business and putting in place a solid structure to build your business.
The greatest advantage of a Texas LLC is limited liability protection. Without the use of an LLC, a business is run as a sole proprietorship and in this case, the owners are completely and wholly responsible for all the obligations of the business including any liability resulting from lawsuits in the future.
But the Texas LLC protection takes this sole proprietor risk away as long as your Texas LLC is properly formed and used to operate a business. This is a huge advantage and makes it a no brainer if you are deciding whether to use one. The costs to form and maintain one is so low compared to the potential value you can measure of keeping your personal assets protected. In today's world where people sue for anything and small business lawsuits are an epidemic, this is an essential protection you need for business.
A second benefit of using this kind of vehicle for your business is that the Texas LLC is an official entity and the use of one automatically distinguishes you from all the non-legal entity businesses out there. Potential customers view official legal entity businesses as more trustworthy and professional so this can help with getting your business started and obtaining customers.
A third benefit relates to federal income taxation. A Texas LLC can choose whether it wants a single layer of pass through taxation or to be taxed as a corporation. There are no requirements or conditions to either choice. The ability to avoid the double taxation of a C corporation without having to worry about meeting a list of requirements is one reason the Texas LLC is the most common choice for small business in Texas.
A fourth benefit is that a Texas LLC is quite simple to operate and offers the most flexiblity when it comes to management. Unlike a Texas corporation, there are no legally required formalities or management requirement. Actually, the Texas laws allow the members to decide amongst themselves how exactly the business will be managed and operated.
These are great features for the small business owner because each business is different and has different goals, objectives and concerns. Smaller and simple businesses can focus more on their businesses without having to worry about unnecessary compliance requirements while larger and more complex businesses can add the necessary requirements to meet their business needs.
When you form a Texas LLC, you are taking the most important step for you and your business and putting in place a solid structure to build your business.
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If you want to gain these advantages, make sure you Create a Texas LLC using a established filing service. Texas Business Createation can Create Your Texas LLC in three business days: http://www.TexasBusinessCreateation.com
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