TEXAS LLC FOrmation LAWYER
At the The Law Office of Nathaniel Gilbert, PLLC we help business owners take the first step toward launching their business ventures with confidence. Based in San Antonio, Nathaniel Gilbert proudly serves clients across Texas, including Houston, Dallas, Amarillo, Austin, and Fort Worth. Whether you’re starting a new business, managing investments, or formalizing your work as an independent contractor, working with an experienced LLC formation attorney ensures you have a well-structured business.
LLC Basics: What You Need to Know
A Limited Liability Company (LLC) is a popular business structure in Texas due to its flexibility and legal protections. One of the key advantages of an LLC is that it provides personal liability protection to its owners, known as members. This means that in most cases, the personal assets of the members are shielded from the debts and liabilities of the business. Additionally, LLCs benefit from pass-through taxation, where profits and losses are reported on the members’ individual tax returns, avoiding the double taxation commonly associated with corporations.
Limited liability companies are also easier to manage compared to corporations. They have fewer regulatory requirements, such as no obligation to hold annual meetings or maintain extensive records. This makes them especially appealing for small to mid-sized businesses. Furthermore, the structure allows for customizable management and profit distribution arrangements, offering greater operational flexibility.
Why Hire a Texas LLC Formation Attorney?
While it might be tempting to use an out of state filing service, the reality is that these services rarely offer the legal insight and customization necessary for long-term success. Hiring an experienced LLC formation lawyer, like Nathaniel Gilbert, ensures your business is built on a strong legal foundation. From choosing the appropriate structure to addressing liability, tax considerations, and operational agreements, we handle the details that generic services overlook. The result is a business entity that’s prepared for real-world challenges.
Choosing the Right Entity for Your Texas Business
Selecting the correct business entity is one of the most important decisions you’ll make when starting a business. Each structure carries distinct benefits and legal implications. A good LLC formation attorney can guide you through this decision to ensure your entity supports your long-term goals. While an LLC is the go-to choice for many, other options may suit your needs better, such as:
- Professional Limited Liability Company (PLLC): Designed for licensed professionals such as doctors, lawyers, counselors, and accountants. It offers the same liability protection as an LLC but is required for certain regulated professions.
- Series LLC: A unique structure in Texas that allows for the creation of multiple “series” or sub-entities under a single LLC umbrella. Each series can have separate assets, members, and operations—ideal for managing multiple investments or projects.
- Corporation: A more formal entity that includes C Corporations and S Corporations. Offers strong liability protection and potential tax advantages but requires more maintenance, including annual meetings and detailed record-keeping.
- Limited Partnership (LP): Consists of general and limited partners. General partners manage the business and assume liability, while limited partners contribute capital and share profits but have limited liability.
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Mr. Nathaniel Gilbert was super easy to work with and down to Earth. He made getting my LLC easy and fast and explained every detail of the paperwork to make sure it was correct and understood. I also like that he shares the same outlook on the outdoors as I do.
– Jamie A.
LLC Formation Comparison
Working With Attorney Nate Gilbert
Work with one, highly experienced attorney, from start to finish on your project
Flat rate packages, established up front; That will always be your only payment!
Reach out directly to your attorney; One-on-one access to your attorney during your representation
Know you matter and won’t fall through the cracks– We don’t take on more clients than we can adequately serve at any time
Other Larger Firms
Chance of being passed around from senior partner, to associate, to another associate, or paralegal
Hourly rates, unknown fees or other surprises on your final bill – Every phone call has a ticking clock that you’re being charged for
Calling the main office line, leaving a message; Someone other than your attorney returning your phone call, or no one at all
Larger firms must take as many clients as possible, and there is a risk of your matter getting lost in the crowd
LLC Formation FAQs
Forming an LLC is an important step in starting your business. First and foremost, you’ll want to know if a Limited Liability Company is right for you. An LLC is a popular choice, mainly because of the “limited liability” the entity can provide. However, your interest may be better served in a partnership, or even a full corporation depending on what kind of business you are starting.
An LLC is the most popular entity choice for San Antonio small businesses mainly for the liability protections that the entity structure provides. The entity is designed to help protect personal assets in the event of lawsuits or other liabilities against the business, but simply slapping an LLC on the end of your business name is not enough to enjoy and rely on those protections. Proper structure and continuing management of the LLC is absolutely essential- staying in line with and adhering strictly to your Operating Agreement is a key part of that process. Are you required to have regular meetings? Regular audits or financial records? Anything you are required to do by your Operating Agreement must be done, which should make you think about what exactly you want to have in your Operating Agreement.
Professional companies such as PC’s and PLLC’s are special forms of organization in Texas that are limited to professionals listed by statute. Lawyers, certain healthcare providers, and CPA’s are generally who these entity types are aimed at. To read more about Professional Corporations and LLCs in Texas and to see if you qualify, Click Here.
San Antonio Business Attorney Nathaniel Gilbert is a business owner in San Antonio and familiar with the struggles and decisions that owners of LLCs may face in the day-to-day operations of their business after startup. Managing your LLC is a responsibility—The Operating Agreement that you signed when you formed your company is a contract between you and your business, and one you must uphold as the owner, member, and/or manager. This is why custom tailored Operating Agreements drafted by your attorney are so crucial to the success of your company. Using an Operating Agreement that you do not understand or do not adhere to puts your company and your assets at serious risk.
Forming an LLC is not a one-and-done situation where simply because you filed a piece of paper with the Secretary of State, you will be absolved of any and all liability that may come you or your business’s way. Ongoing maintenance of the company and corporate formalities are absolutely crucial in actually helping to protect your business and personal assets. One way I like to explain this to my clients is that, an LLC does not protect your assets, but merely provides you with the opportunity to do so. It is your actions and management of your business that will provide the protections you are looking for in an LLC.
LLC’s are generally taxed by pass-through taxation (Click Here to Learn More About Pass-Through Taxation), but the members or managers of an LLC can also make certain elections to be taxed differently in order to take advantage of certain savings. Click here to learn more about how your LLC will be taxed.
Using an LLC to hold assets is a popular choice whether passively holding one investment or actively managing several as part of an investment portfolio. The liability protections provided by an LLC should never be taken for granted; consult with your attorney to determine your best course of action in holding and managing investments in an LLC. You may want to consider a Series LLC, a special kind of LLC structure available in Texas.
Series LLC’s are an LLC that has the ability to form multiple other LLC’s under its own name. This type of entity is commonly used for investing in various assets or managing an investment portfolio—You can create new LLC’s for each property in order to take advantage of the asset liability protection for each separate property. If you think you might be interested in a Texas Series LLC, Click Here to learn more.
To form an LLC in Texas, you’ll need to file a Certificate of Formation with the Texas Secretary of State, draft an Operating Agreement, and obtain an Employer Identification Number (EIN) from the IRS
Forming an LLC in Texas typically takes 5-7 business days if filed online. Processing times can vary depending on the method of filing and the Secretary of State’s workload
Yes, Texas LLCs must file an annual Public Information Report and pay franchise taxes to remain in good standing
Yes, foreign entities can register to do business in Texas by filing an Application for Registration with the Texas Secretary of State
Your LLC name must be unique and not already in use by another business in Texas. It should comply with state naming rules and include “LLC” or “Limited Liability Company
Depending on your business type and location, you may need local, state, or federal licenses and permits to operate legally
Yes, an LLC can own another LLC, known as a subsidiary LLC. This structure can be beneficial for liability protection and management