#You in my business free#
Depending on how the LLC is structured, it may be likened to a general partnership with limited liability, or to a limited partnership where all the owners are free to participate in management and all have limited liability, or to an “S” corporation without the ownership and tax restrictions imposed by the Internal Revenue Code. The limited liability company ( LLC) is not a partnership or a corporation but rather is a distinct type of entity that has the powers of both a corporation and a partnership. Online filing of a certificate of formation is provided through SOSDirect. The Secretary of State provides a form that meets minimum state law requirements. Limited Liability Company: A Texas limited liability company is created by filing a certificate of formation with the Texas Secretary of State. This is not a matter with which the Secretary of State may assist. Please contact the IRS or competent tax counsel regarding the decision to be taxed as an “S” corporation and the requirements for filing the election. A for-profit corporation elects to be taxed as an “S” corporation by filing an election with the Internal Revenue Service. The Secretary of State cannot assist you.Īn “S” corporation is not a matter of state corporate law but rather a federal tax election.
Choosing the best management structure for your corporation is a decision you make with the advice of an attorney. The owners of a corporation are called “shareholders.” The persons who manage the business and affairs of a corporation are called “directors.” However, state corporate law does provide for shareholders to enter into shareholders’ agreements to eliminate the directors and provide for shareholder management. Online filing of a certificate of formation is provided through SOSDirect.Ī corporation is a legal person with the characteristics of limited liability, centralization of management, perpetual duration, and ease of transferability of ownership interests. If no business premise is maintained, then an assumed name certificate should be filed in all counties where business is conducted under the assumed name.Ĭorporation: A Texas corporation is created by filing a certificate of formation with the Texas Secretary of State. If the business of the partnership is conducted under an assumed name (a name that does not include the surname of all of the partners), then an assumed name certificate (commonly referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained. A partnership generally operates in accordance with a partnership agreement, but there is no requirement that the agreement be in writing and no state-filing requirement. General partnership: A general partnership is created when two or more persons associate to carry on a business for profit. If no business premise is maintained, then an assumed name certificate should be filed in all counties where business is conducted under the assumed name. If the business is conducted under an assumed name (a name other than the surname of the individual), then an assumed name certificate (commonly referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained. In a sole proprietorship, a single individual engages in a business activity without necessity of formal organization. Sole proprietorship: The most common and the simplest form of business is the sole proprietorship. Generally, businesses are created and operated in one of the following forms: The decision regarding business structure is a decision that a person should make, in consultation with an attorney and accountant, and taking into consideration issues regarding tax, liability, management, continuity, transferability of ownership interests, and formality of operation. SOSDirect: Business Searches & Formations.
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