Texas Limited Liability Company | State of Texas LLC

In 2007, over 69,000 Texas limited liability company entities were organizes by the state. Texas rivals the most popular states for business organizations (like Delaware and Florida) when it comes to LLCs started in the state. While the growth and popularity of this entity is evident in all states, Texas increases are much higher than the averages of other states.

One reason for this is that Texan lawmakers have consistently improved the Texas business organizations laws each year to ensure that the limited liability company remain simple enough yet powerful and flexible enough for any small business situation.

TEXAS LIMITED LIABILITY COMPANY PROVIDES SOLID PERSONAL ASSET PROTECTION

The primary benefit and reason you should use a Texas LLC for your business operations is the layer of limited liability it provides to owners. Texas BOC law, Section 101.114, exempts a member or manager from the debts, liabilities or obligations of the limited liability company, unless otherwise stated in the company agreement of the business.

A non-legal entity business (known as a sole proprietor venture) does not offer this protection and without it, your business becomes a very risky proposition. Without LLC protection, you place your assets and yourself at enormous financial risk. While the rewards of entrepreneurship can be significant and thus business ownership is a worth endeavor. . but just be sure you protect yourself from the financial risks that come with it.

Manage most of that risk through the use of a State of Texas LLC.

THIS ENTITY IS A BETTER ALTERNATIVE FOR THE SOLO BUSINESS OWNER

According to Section 101 of the Texas Business Organizations Code only one member is required to start an LLC in Texas. On the other end of the spectrum, this type of entity can be owned by hundreds if not thousands of owners. There is no limit on membership under the Texas statutes.

In addition, the IRS makes the taxation of a single member Texas LLC the same as if the business entity did not exist. So, there is no added tax complexity that an owner must subject himself to in order to get the enormous benefits of protection and other advantages of the Texas limited liability company.