Some people who are new to the business world fail to recognize the significance of hiring a business attorney Houston as they start their business. They overlook the fact that an attorney can help decide early on matters concerning an organizational structure that suits their business. Among the customary business setups are:
Sole proprietorship. The business is established by a single owner with the use of his own resources. All transactions make us of their own personal checks, and revenue is deposited straightaway to the proprietor’s own account. Expenses will have to come from the same account as well. In effect, the owner’s personal funds are combined with the business. This type of business set up puts the proprietor’s personal assets at risk in case the business crashes.
Partnership. The business is owned by two or more people who are not required by law to tender documents embodying the partnership. If responsibilities, income, liabilities are not laid out properly in a contract, disagreements in the future can threaten the business’s success or survival. Partnerships can either be general or limited.
Limited liability company. This offers better protection for your personal assets. Have your business attorney Houston explain the disadvantages of this type of business setup to you.
Corporation. This is a top favorite among investors but the number of legal documents makes it too complex for you to consult a business attorney Houston before you set up a corporation.
