Houston Incorporation
If your great idea is now a thriving business with a boatload of customers and a growth rate through the roof, it's time to think about business incorporation. But what type of corporation should you form? Houston business incorporation attorneys at the Duke Firm, PC offer these business corporation tips for those ready to incorporate but confused about what corporate structure to choose.
Houston area businesses should first consider how much risk is involved in their firms when choosing a corporate structure. A legal corporation, with limited liability, is a good structure for a firm with a lot of risk. Business incorporation attorneys advise that a legal corporation protects the owner's personal assets from creditors should the business fail.
Businesses choosing to legally incorporate will need to further choose between a C-Corporation and an S-Corporation. An incorporation attorney can provide legal advice on the tax treatment of these corporate options and which would best suit your business.
The Duke Firm incorporation attorneys also advise clients to consider cost and ease of setup in choosing a corporate structure. For a single individual, a sole proprietorship is the simplest and most common form of business. A sole proprietorship business can be set up as easily as filing a name certificate in the local county if the business name is different from that of the owner. Unlike business incorporation, this structure offers no protection of personal assets. Similarly, a general partnership is a simple, economical structure for two or more people operating a business, but lacks the protection provided by an incorporated business.
Incorporation attorneys at the Duke Firm also advise clients to consider disclosure of information requirements in choosing the structure for their firms. An incorporated business needs to provide much more information to the state than a partnership, sole proprietorship, or other forms of business. Once disclosed to the state, this information is available to the public.
