Starting a business in Texas?

March 20, 2013 (Press-News.org) Starting a business in Texas?

Article provided by Manfred Sternberg & Associates, PC
Visit us at http://www.msternberg.com/

When the economy starts struggling, many people in otherwise stable employment positions may find themselves out of a job. Finding a new place to work can be difficult, especially when many employers are looking to cut costs. This leaves potential applicants considering other options that may be available. Some decide to return to school to advance their education, while others may consider starting their own businesses.

Once a person has the idea that he or she would like to develop, it will be time to discuss the different types of business entity formation. Many individuals are not experienced with this particular issue, and may have questions about the way that their businesses should be established.

In Texas, there are several forms of business entities that an individual may select when starting a business. Each entity will have different characteristics that business owners will need to consider before deciding which type of entity best suits their needs.

In sole proprietorships, one individual owns the business. He or she will make all of the decisions, and will be responsible for any debts or liabilities that the business incurs. If there is more than one individual involved in owning the enterprise, a different type of entity will need to be selected.

Partnerships, limited partnerships, limited liability partnerships and corporations are potential options that might be selected if more than one person will own the business. These entity types all have different tax and liability consequences for the owners, so it is important that the owners speak to an attorney to understand which of these options is best for their situation.

Things will become slightly more complicated when more than one person is making the decisions at a new business, so it is important that the individuals discuss these potential conflicts at the time of formation. Failing to address dispute-resolution concerns at this time can lead to costly and time-consuming litigation between the parties later.

After formation, businesses may continue to experience issues for which they will need legal counsel. Customers do not pay bills; suppliers fail to meet the terms of their agreements. Speak to an experienced business law attorney in your area to better understand how best to proceed. A comprehensive plan at the time of formation is essential to your business's success; failing to develop your business properly could mean that you are placed at a significant financial risk.

Not all businesses will succeed, no matter how great the idea sounds. While no businessperson ever plans to fail, it is important to have a plan in place that protects you if things do not work out. This can help reduce the problems that may arise in the future.