For most companies, one of the first tasks to be completed is the selection and formation of a legal entity.
Summary of Benefits & Formation Process
While there are number of benefits to forming a Texas LLC or Texas corporation, one key benefit of creating a limited liability company (LLC) or a corporation is the fact that liability to the owners of the business will be limited to the investment they have in the entity.
If the LLC or corporation incurs a debt, breaches a contract, or commits a tort, the owners are generally not personally liable. As such, creditors can only go after the assets of the LLC or corporation (i.e., but not personal assets).
By choosing to run your business as an LLC or a Corporation, you are putting up a shield to keep business creditors from your personal assets. This is the smart and safe way to run your business.
Of course the type of limited entity to elect will depend on a number of factors, and thus the selection of a corporation, LLC, LLP, LP or other type of partnership or association should be made carefully and in consultation with legal counsel, tax experts, and other trusted business professionals.
We have been helping start-ups and privately owned businesses for many years, including assisting in the formation of numerous Texas corporations and limited liability companies (LLCs).
Flat Fees Texas Corporation Formation & Texas LLC Formation
Because we have assisted in the formation of many Texas LLCs and Corporations, we generally know what a typical Texas corporation formation or Texas LLC formation will require. As such, we are able to handle most typical Texas LLC and Texas corporation formations on a flat fee basis. This allows our clients to better manage expenses and prioritize their resources. For a flat fee of $1,500 (which includes our legal fees plus the Texas Secretary of State filing fee of $300), we will:
- prepare and file the Certificate of Formation with the State of Texas
- draft a standard set of bylaws (or, in the case of an LLC, a Company Agreement),
- draft an Organizational Consent, and
- prepare a “Registered Agent Consent” form.
From a legal standpoint, that takes care of just about everything you need to get your new entity up and running, other than obtaining an IRS tax identification number (known as an Employer Identification Number or “EIN”), if needed.
Value
Many business owners need legal help creating a corporation or LLC, but are afraid of paying unknown, possibly huge legal fees. To ensure against potential “sticker shock” of a huge legal bill, our firm tells clients upfront what costs to expect to from us regarding their Texas corporation formation or Texas LLC formation (see above). Some companies try to minimize entity formation costs by using cheap or free standardized legal documents or online services like legalzoom.com and hope they have done things correctly. The danger with cookie-cutter forms or “do it yourself” is that, if the entity chosen isn’t appropriate, or if documents and formalities are not properly handled, the formation process could be ineffective or require cleanup later on at a much greater cost than any perceived savings achieved. With our flat fee services, you get the best of both worlds: trustworthy expert advice and assistance to walk you through the entire process of forming your Texas LLC or Texas corporation at an affordable, transparent, and predictable cost.
Limitations
In some instances, such as where the formation of the Texas LLC or Texas corporation will require a great deal of customization and special provisions, a flat fee is not appropriate. In addition, although LLCs and Corporations are common entity choices, if another type of business entity (or a non-Texas entity) were the best fit, the flat fee would not be appropriate. Of course, we can most likely assist, and would tell you in advance what costs to anticipate. Moreover, the flat fee does not include any additional work, such as significant revisions to the formation documents, or additional agreements such as shareholder agreements, employment, or other contracts. Any additional work beyond initially creating a Texas LLC or Texas corporation will be billed at our standard hourly rates. Of course, in keeping with your mission, if additional work was needed, we provide clients with a budget in advance.
Payment
All flat fees must be paid in advance. As a courtesy, we accept most major cards and can accept online checks – but don’t increase our charges if that’s how you choose to pay.
Contact Us Today
If you are interested in forming a Texas LLC or creating a Texas corporation, contact us today so we can get started on protecting your personal assets as soon as possible. Contact us via the Contact page of this site.