Should your business be an Inc. or LLC?
If you plan on being a publicly held company or having the company acquired by a publicly held company, go with incorporation and become an Inc.
Otherwise, take advantage of the flexible structure, informal governance and options available to a limited liability company when you form the LLC.
The Texas Business Organizations Code establishes terms for forming your company, the real governance of your entity is provided by the company agreement. If you have partners or investors in the business with you, it is critical not to accept a standard form download as your company agreement.
A good company agreement is a guide to take you through the changes and evolution of your business. It should not be put in a file cabinet and forgotten.
Do you have a good working agreement for your business?
Read through your agreement and see if provides you with specifics in dealing with the "D's" of business.
- Does your form tell you what to do when there is a death, disability, divorce, disagreement or departure?
- Does your agreement set out a procedure for implementing changes in the business? How do you bring in a new member?
- How do you exclude a member who is holding back the company?
- How do you place a value on ownership interests?
I work with you to provide a company agreement which gets the company through tough times and enables the company to seize the opportunity in the future.
My fixed fee approach to preparing company agreements means you will be able to give consideration to the important matters in an affordable manner with prompt attention to the demands of your business.
What's the deal with Series LLC's?
Not to sound like television advertising but a series LLC can slice and dice!!! But wait, there's more!!! A real estate company can use one LLC to own any number of properties. Each property can be a series subsidiary and can have members who only have an interest in the one property. The interest and liability related to one property have no impact on a different subsidiary. Membership interest can be in the company itself and/or one or more subsidiaries. Forming a series LLC or amending a current LLC to provide for subsidiary companies is economical and efficient, providing a master-subsidiary structure for the entire enterprise within a single entity. Series LLC's can provide units which are holding certain investments or have a membership which may or may not include members from other series. You can organize financing and equity by individual venture and provide members with rights and responsibilities unique to the series in which they are members. Another fixed fee service is providing a series LLC with the company agreement and membership allocations which fit your plans.