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Entity Formation Series :: Overview

August 2017 Posted by Ford Harmon

Today, we are launching a five-part Blog Post Series covering the questions that should be asked by anyone who is thinking about starting a business or who has already started a business but has not officially formed an entity with the Texas Secretary of State. The first goal of this Series is to make potential…

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Entity Formation Series :: Part 1 – When Should You Form An Entity?

August 2017 Posted by Ford Harmon

Whether you are venturing off on your own or working with a group, one of the first decisions a business must make is when it should officially form an entity. This post provides some guidance on when to make this decision. Attorneys will often advise clients that entities should be formed the moment the client…

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Entity Formation Series :: Part 2 – What Type Of Entity Should You Form?

August 2017 Posted by Ford Harmon

After you have made the decision that it is time for you to form an entity, the next two decisions that need to be made are: (1) what type of entity should be formed; and, (2) in what state should the entity be formed? While these are two distinct questions, neither one of them can truly be answered without…

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Entity Formation Series :: Part 3a – Why A Limited Liability Company Is (Usually) The Best Entity Vehicle For Most Business Models

August 2017 Posted by Ford Harmon

There are many different entity vehicles to choose from under Texas law. Although there are other options, the more commonly-utilized entities include: 1.     limited liability companies (LLCs); 2.     for-profit corporations; 3.     limited partnerships (LPs); 4.     general partnerships; and, 5.     sole proprietorships. It is important to note that these entity forms are creations of Texas state law, not federal law. When…

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Entity Formation Series :: Part 3b – Why A C Corporation Is (Usually) The Best Entity Vehicle For Those Businesses With A Market-disrupting Business Model

August 2017 Posted by Ford Harmon

If you are looking to disrupt a market and aspire to launch the next Facebook or Uber, then you should likely form a C corporation. In a previous post, Entity Formation Series Part II – When Type of Entity Should You Form?, I told you that a C Corporation should be used if you have a market-disrupting…

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