Many people turn to Plano business law firms when starting a company. They’re not sure whether their company should be an LLC or if it should be a partnership, or a corporation. Which is the better route to take? One of the things that separate Christman Ramsey & Foster, PC from many other business law firms in Plano, TX, is that we take the time to thoroughly explain all of a client’s options. We’ll make sure you know which form of business entity will do the best job of ensuring your personal assets.
Which Way Should You Go?
You’d be surprised at how many attorneys with business law firms assume that clients already know what type of business orientation they want. These business law firms will find having to explain the differences between a partnership, LLC, or corporation to be an imposition on their time. But we don’t work that way at Christman Ramsey & Foster, PC. Here’s a quick look at what these entities mean.
- Partnership – Many business law firms in Plano, TX, will recommend that clients form a partnership. In a nutshell, this is where two or more business owners are working together to make a company profitable. There are many different types of partnerships – we can explain them and their pros and cons.
- Corporation – This is an entity managed by directors and owned by shareholders. A corporation can only be created in Texas by filing the appropriate certificate with the Secretary of State. In the eyes of the law, a corporation is actually a legal person, separate from shareholders. This makes shareholders’ assets protected from the corporation’s liabilities.
- LLC – This stands for Limited Liability Company. An LLC combines aspects of a partnership as well as a corporation. One significant benefit is that a member’s liability can typically only be limited to the amount of their investment.