PROS AND CONS OF AN LLC
If you are a small business owner, it is important to select the business structure that best fits your needs. One of the most popular business structures is a limited liability company (LLC), which is a hybrid business entity that applies elements of both a corporation and a partnership.
The main benefit of an LLC is that, like a corporation's shareholders, each member of the LLC will not be held liable for the debts of the LLC. In contrast, the owner of a sole proprietorship or each partner in a partnership may be held individually liable for the debts of the business.
Consequently, if you have substantial assets outside of your business, like a home or automobile, an LLC can prevent future creditors from having a claim on your personal property.
Although there are many benefits to an LLC, they do come with a price. In order to form an LLC in Texas or to register your out-of-state LLC to do business in Texas, you must file the appropriate form with the Texas Secretary of State. Additionally, you will be required to pay a filing fee. For Business Filings & Trademarks Fee Schedule, click here.
Whether you are forming a new startup company or considering converting an already existing business to an LLC, you should talk to an experienced business law attorney.