What Type of Entity Should I form?
Liability protection, tax implications and management structure are all important considerations in determining the type of entity that you should form. Consider the product or service that you will provide, if you will need to raise capital, how the company will be managed, and your potential exposure to liability. Answering these questions will help to determine what entity is best.
What is a Certificate of Formation?
A certificate of formation is the document that is filed with the Secretary of State to create your business entity. If you are setting up a corporation, limited liability company, limited partnership or non-profit organization, you must file a certificate of formation to establish your business. More information can be found by visiting the Texas Secretary of State website.
How much are the Filing Fees?
The filing fee for a certificate of formation is $300.00 for any for-profit entity type. The filing fee for a non-profit entity is $25.00.
Where can i find more information about the different entity types?
what is the difference between an s-corp and a c-corp?
A c-corporation is a traditional corporation. A s-corporation is a tax election that certain entities can make with the IRS that will determine how the entity files its taxes.
Do I need a partnership agreement?
The short answer is yes. Every business needs a partnership agreement, bylaws or company agreement, depending on the type of entity. These documents are commonly called governing documents and set forth how the company will run including how owners are added or removed, how the profits and losses are split between owners, management structure and termination of the entity. Taking the time to draft a comprehensive governing document will ensure that your entity and its owners are well protected.
what are bylaws?
can i form my company by myself?