Texas recently passed a law aimed at curbing frivolous lawsuits by forcing plaintiffs to pay defendants' legal fees in the event a suit is found to be baseless. However, the threat to small businesses is by no means extinct.
Accordingly, solo entrepreneurs, general partnerships and sole proprietorships may want to consider forming an LLC in Texas - or aquiring any corporate status for that matter. By incorporating a business, the personal assets of a company's owners are protected from legal and judicial incursion resulting from a lawsuit.
While there are some professions and business types for which this threat is minimal, many businesses - particularly small ones - are often confused by the number of entity statuses available and how each one is different. Phoenix, Arizona-based attorney Richard Keyt provides a general synopsis on the matter.
"Corporations are better under certain limited circumstances, such as when business owners anticipate a public offering," Keyt tells Reuters. "But for most businesses the limited liability company is the way to go."
Of course, entrepreneurs will want to consult legal and tax professionals to acquire advice that suits the specific concerns of a company.
Tags : form an llc, how to incorporate, llc filing, tx
Posted: Jun 8th, 2011