Texas LLC Formation

Small business owners in Texas can realize many benefits from forming an LLC or limited liability company. As a registered LLC the state of Texas will not allow any other company to use your name or title, therefore your reputation and brand are secured.

There are several tax advantages for the LLC business structure. Your operating costs and business expenses can be deducted from your gross revenues as an LLC. You can also deduction depreciation expense from gross revenue. There is no double taxation. Your profits will be taxed at the member level, not the company level plus the member level.

When tax time comes, an LLC can choose to be taxed as a sole proprietor, a partnership or a corporation. You will have taxing options. A member will not have to pay a self employment tax because the member’s share of net profit is not considered earned income.
The LLC can have a very flexible organizational structure. In Texas, a single member can utilize this business structure. An operating agreement will outline how the organization is to be structured.

The agreement should specify the duties and responsibilities of members. It should also include members rights and benefits and the details about distributions. The LLC can survive beyond the death of one member. This can be very important to a small family owned business. The LLC does not require the paper work or regulatory restrictions that occupy corporate legal teams.

An LLC can protect personal assets. If your business incurs large debts, your personal assets are protected. A legal judgment against your company can not touch personal assets.
LLC status can be a great option for small business owners in Texas. The initials ‘LLC’ after your companies’ name show good business sense and can help attract potential investors.