When starting a business in Texas, one of the first decisions you'll need to make is selecting the right business structure. Your choice will have legal, financial, and operational implications, so it's essential to make an informed decision. When deciding on a business structure, you will need to consider the end goals for your business and determine which entity will help you achieve those goals.
Different Business Structures in Texas
Texas offers several business structure options, each with its own set of advantages and disadvantages. The most common business structures in the state include:
Sole Proprietorship: This is the simplest form of business, where a single individual owns and operates the company. The owner assumes complete liability, and the business is not treated as a separate legal entity. While this structure may be easy to establish, personal assets are at risk if any legal issues arise. The benefits of a sole proprietorship include being easy and inexpensive to set up and having complete control over business decisions. The drawbacks include unlimited personal liability, difficulty raising capital, and a lack of formal structure.
Partnership: A partnership involves two or more individuals who agree to share the profits, losses, and responsibilities of the business. The three main types of partnerships in Texas are general partnerships, limited partnerships, and limited liability partnerships. Partners are fiduciaries and have a considerable legal responsibility to each other. The benefits of a partnership include shared decision-making and workload, access to additional resources and expertise, and asset protection. The drawbacks of partnerships include higher legal liability, the potential for conflicts among partners, and the highest duty of care, as partners are fiduciaries to each other.
Corporation: A corporation is a separate legal entity from its owners, known as shareholders. The two main types of corporations in Texas are S corporations and C corporations. Corporations provide limited liability protection to shareholders, meaning their personal assets are generally safeguarded from the company's debts or legal actions. Corporations have a more complex structure, with directors, officers, and shareholders involved in decision-making processes.
The benefits of corporations include limited liability protection, the ability to raise capital through the sale of stocks, and credibility in the eyes of investors and lenders. S Corporations may be taxed like partnerships, so shareholders can benefit from deducting business expenses from their personal taxes. The drawbacks of corporations include a complex formation process, ongoing compliance requirements, and double taxation for C corporations.
Limited Liability Company (LLC): An LLC combines the advantages of a corporation and a partnership. It offers limited liability protection to its owners (referred to as members) while providing flexibility in terms of taxation and management. LLCs in Texas can have a single member (owner) or multiple members, and they can be managed by members or designated managers. The benefits of a limited liability company are limited liability protection, operational flexibility, and fewer compliance requirements than corporations. The drawbacks of an LLC are filing fees, state franchise tax requirements and additional administrative requirements compared to sole proprietorships.
Use an Experienced Attorney for Business Formation and Planning
Choosing the right business structure is a critical decision that can impact your business's long-term success. The best business structure for you depends on your specific needs and goals. Each entity has its own structure, legal obligations, and tax implications that need to be considered. It is highly recommended that you consult with a knowledgeable attorney who can guide you through the business formation process.
Lisa Bradford is an experienced attorney with a deep understanding of Texas business laws and regulations who can assist you with business formation and planning. Lisa will examine your unique goals to help you determine which business structure is right for you and assist you through the formation process. Call 512-598-5802 or send an email to firstname.lastname@example.org to schedule a consultation and take the first step towards establishing the right structure for your Texas business.
When you have a child with someone, it's natural to focus on the joys of parenthood. However, if you are an unmarried co-parent, you must consider the potential for legal disputes or custody battles and take proactive steps to establish your legal rights as a parent. To protect your parental rights and ensure that your child's best interests are always taken into account, it's essential to go through the process of legally obtaining a possession order.
What Is a Possession Order?
A possession order is a legal document that outlines the rights and responsibilities of each parent with regards to their child. It establishes who the primary caregiver is and where the child will live. This is important because it gives each parent legal rights and responsibilities with regards to their child, and it helps to prevent any misunderstandings or disputes about custody.
In addition to determining the primary caregiver and the child's residence, a possession order may cover other essential matters, such as visitation schedules, holiday arrangements, and other aspects of the child's care and upbringing. It may define how decisions regarding the child's education, healthcare, and other significant aspects of their life will be made. A possession order is a legally binding document that can be enforced by law, providing a clear and structured approach to co-parenting arrangements.
The Risks of Not Obtaining a Possession Order
If you do not obtain a possession order, either parent can take the child and leave without facing any legal consequences. This means that if one parent decides to take the child and deny the other parent possession, they have not broken any laws. This can be devastating for the parent who is left behind, as they may have no legal recourse to regain custody of their child.
It's important to note that obtaining a possession order does not mean that one parent has full custody of the child. Instead, it simply establishes who the primary caregiver is and where the child resides. Both parents have legal rights and responsibilities with regards to their child, and they should work together to ensure that the child's best interests are always taken into account.
How to Obtain a Possession Order
Obtaining a possession order may seem like a daunting task, but it's essential to do so to protect your rights as a parent. You can obtain a possession order through a legal service or by consulting with a family lawyer who can guide you through the process and ensure that your rights as a parent are protected. By taking this proactive step, you can ensure that you have legal protection and clarity in your role as a co-parent.
If you are an unmarried co-parent and need to legally establish your rights through a possession order, contact Lisa Bradford today. With over 23 years of experience as an attorney in Texas, Lisa has the knowledge to guide you through the process and ensure that your parental rights are protected. Schedule an appointment by calling 512-598-5802 or sending an email to email@example.com. Don't risk the potential of losing custody of your child – take proactive steps to protect your rights as a parent today.
As we go through life, we often find ourselves in positions where we have to make decisions on behalf of others, whether it be for family members, friends, or acquaintances. These decisions can range from simple tasks like paying bills to more complex ones like managing investments. When we take on such responsibilities, we may unintentionally become informal fiduciaries, and with that comes a set of legal duties that we must uphold.
Becoming an informal fiduciary can happen organically, as you step up to help someone in need. However, it is important to recognize the potential legal and ethical implications of taking on such responsibilities. Before you agree to manage someone else's affairs, it is essential to have a clear understanding of what will be expected of you and the legal obligations you will be assuming.
What Is an Informal Fiduciary?
A fiduciary is a person or entity that is entrusted to act in the best interests of another party. This can be a legal, ethical, or moral responsibility, and it requires the fiduciary to put the interests of the other party ahead of their own. Fiduciaries can include financial advisors, trustees, lawyers, and other professionals who have been given a position of trust by their clients or beneficiaries. As a result, fiduciaries are held to a high standard of conduct, and they are expected to act with honesty, integrity, and loyalty at all times. If a fiduciary fails to fulfill their duties or acts in a way that harms the other party, they can be held liable for any losses or damages that result from their actions.
An informal fiduciary is someone who has been entrusted with managing the affairs of another person, but without any formal legal agreement or appointment. For example, if you are managing the finances of an elderly parent who is no longer capable of handling their own affairs, you are acting as an informal fiduciary. Similarly, if a friend asks you to manage their investments while they are out of the country, you are also acting as an informal fiduciary.
What Duties Does an Informal Fiduciary Have?
As an informal fiduciary, you have a duty to act in the best interests of the person whose affairs you are managing. This means that you must always act with honesty, integrity, and loyalty. Additionally, you must avoid any conflicts of interest that could compromise your ability to act in the best interests of the person you are representing.
You must also exercise a reasonable degree of care and skill when managing the affairs of the other person. This means that you should take the time to educate yourself about any financial or legal matters that you are not familiar with, and seek professional advice when necessary.
In some cases, an informal fiduciary may also be required to keep accurate records of their actions on behalf of the other person. For example, if you are managing the finances of a family member who has appointed you as their power of attorney, you may be required to keep detailed records of all transactions and decisions made on their behalf.
Understanding the Legal Obligations of an Informal Fiduciary
When taking on the role of an informal fiduciary, it is a good idea to consult with an attorney who can help you understand your legal obligations and offer guidance on how to best manage the other person's affairs. This can help you avoid any potential legal pitfalls and ensure that you are acting in the best interests of the person you are representing.
If you are in need of legal guidance as an informal fiduciary, contact Lisa Bradford today. As an attorney with over 23 years of experience, Lisa is well-versed in the intricacies of fiduciary law and can offer valuable advice. With her assistance, you can feel confident in your ability to fulfill your legal obligations and make informed decisions on behalf of those you care about. Schedule an appointment by sending an email to firstname.lastname@example.org or calling 512-598-5802.
"Death and taxes are the only two certainties in life," as the old saying goes. While we can't control when we'll pass away, we can plan for it to ensure our loved ones are taken care of and our assets are distributed according to our wishes. That's where estate planning comes in. But when should estate planning begin?
The answer is simple: as soon as possible. As soon as you start working and accumulating assets, such as a car, savings account, or retirement investments, you should begin estate planning. Regardless of your age or financial status, estate planning is something that everyone needs to consider. Estate planning enables you to specify precisely how you want your assets to be distributed after your death, ensuring your wishes are carried out and your loved ones are taken care of.
The Importance of Keeping Estate Planning Documents Updated
Estate planning is not a one-time event. Life changes, and so do your estate planning needs. Whether it's marriage, divorce, the birth of a child, a death in the family, or a relocation, these significant life changes can impact how you want your assets distributed after your death. It's crucial to keep your estate documents up to date and review them regularly to ensure that they accurately reflect your current wishes.
Even if you have an estate planning tool set up, like a trust, it's important to remember that you have to fund the trust. Establishing a trust is just the first step. You need to have a plan in place to transfer your assets to the trust to ensure that they will be distributed according to your wishes. Additionally, if you move to a different state, you may need to reestablish your trust in that state. Failing to update and correctly set up your estate documents can result in assets being distributed according to state law, which may not align with your wishes.
Hire an Experienced Attorney for Estate Planning
Given the complexity and importance of estate planning, it's best to seek the advice of a skilled attorney. Lisa Bradford, with over 23 years of experience in estate planning, can help you navigate the complexities of the process, ensuring that your wishes are carried out exactly as you intended.
Lisa can help you choose the best estate planning tool for your unique needs and goals and can ensure that your estate planning documents are up-to-date. Contact Lisa today at 512-598-5802 or send an email to email@example.com to schedule a consultation and take the first step towards securing your legacy.
Are you searching for a way to safeguard your family's financial future and shield your assets for generations to come? If the answer is yes, selecting the right estate planning tool that aligns with your unique needs and goals is essential. Among the various options available for estate planning, a limited partnership can provide an effective means of distributing wealth to beneficiaries while offering asset protection and tax benefits. In this blog post, we'll take a closer look at what a limited partnership is and how it can be a useful tool for estate planning.
Understanding Limited Partnerships for Estate Planning
A limited partnership is a type of partnership where there are two types of partners: general partners and limited partners. The general partner manages the partnership and is responsible for its debts and obligations, while the limited partner is a passive investor who has limited liability.
In the context of estate planning, a limited partnership can be created to hold the assets of the estate. The general partner, who is often the estate owner or a trusted family member or advisor, manages the partnership and is responsible for making investment decisions and distributing the assets to the limited partners.
The limited partners, who are typically the beneficiaries of the estate, receive a share of the partnership's income and assets according to the terms of the partnership agreement. The partnership agreement can be drafted to provide for the distribution of assets over time or in a lump sum, depending on the wishes of the estate owner.
Benefits of Using a Limited Partnership for Estate Planning
One of the main benefits of using a limited partnership for estate planning is that it allows for the transfer of wealth to the next generation while providing some protection of assets. Because the limited partners have limited liability, their personal assets are shielded from any lawsuits or creditors of the partnership.
Additionally, a limited partnership can provide tax benefits. Income from the partnership can be taxed at each partner’s individual tax rate, which may vary and be a lower tax rate than partner whom contributes the asset to the partnership.
Use an Experienced Attorney for Estate Planning
It's important to note that while a limited partnership can be a useful estate planning tool, it is not appropriate for every situation. It is essential to work with a qualified attorney who can advise you on the best estate planning tools for your specific circumstances.
With over 23 years of experience in estate planning, Lisa Bradford is a knowledgeable attorney who can guide you through this process and help you choose the best option for your unique needs and goals. Don’t wait to start planning for your family’s future. Take action today and contact Lisa at 512-598-5802 or send an email to firstname.lastname@example.org to get started on your estate planning journey.
Divorce is a difficult and often emotional process that can be compounded by financial stress. In Texas, one of the ways that the law attempts to alleviate some of that stress is through spousal support, also known as alimony. Spousal support is a court-ordered payment made by one spouse to the other to help with living expenses after a divorce. However, not every divorce will result in spousal support being awarded. In this blog post, we will discuss the conditions under which you may be entitled to spousal support in Texas.
Who Is Eligible for Spousal Support in Texas?
The Texas Family Code outlines the requirements for spousal support in Chapter 8.051. Under this law, a spouse may be entitled to receive spousal support if they lack sufficient property to meet their own reasonable needs and:
Understanding the Conditions for Entitlement to Spousal Support in Texas
When determining whether spousal support is appropriate, the court will consider many factors. These include the length of the marriage, the earning capacity and financial resources of both parties, and any contributions made by one spouse to the other’s education or career. The court will also take into account any acts of adultery or cruel treatment by either spouse.
It is also worth noting that spousal support in Texas is not typically awarded for an indefinite period of time. Instead, the court will set a specific duration for the support payments. The length of time will depend on the specific circumstances of the case and can range from a few months to several years.
Hire an Experienced Spousal Support Attorney in Texas
Navigating the complexities of spousal support can be challenging, especially during the already emotional and stressful process of divorce. That's why it's crucial to have a knowledgeable and experienced attorney by your side to guide you through the legal process and fight for your rights.
Lisa Bradford is an accomplished family law attorney who is dedicated to helping clients in Texas achieve the best possible outcome in their divorce cases. Don't navigate the legal system alone – contact Lisa Bradford today to schedule a consultation and get the support and guidance you need. To schedule an initial consultation, call 512-598-5802 or send an email to email@example.com.
Is your business operating in the state of Texas? If so, you may be required to file an annual Texas Franchise Report and pay the Texas Franchise Tax. This tax is based on your business’s net income, and the Texas Franchise Report is the document you use to report this information.
The “statute of limitations” refers to the time frame within which an individual may file a lawsuit after an alleged harm has occurred. In Texas, the statute of limitations for civil lawsuits varies depending on the type of case. Understanding the statute of limitations is important because once the deadline has passed, the right to sue or take legal action is usually lost, even if the harm was significant.
Have you looked at your wills lately? When was the last time they were updated? Do they currently meet your estate needs? When it comes to estate planning, it’s important to regularly review and update your wills to ensure that they accurately reflect your current wishes and needs.
As Texans, we’ve lived through COVID-19, we’ve lived through freezes, and now we’re battling inflation and higher costs of goods. With the changing state of the world, how was the year-end for your businesses? How did it compare to previous years? If your year-end suffered, it may be time to evaluate whether your current business structure is allowing your business to achieve its goals.
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