Starting a new business entity can be both exciting and intimidating. One of the things I most enjoy in my practice is helping entrepreneurs start their new businesses. I help the entrepreneur make sure their new business starts out with a firm legal footing. This helps protect them from personal liability in case things to not go well. This is particularly important when there is more than one owner.

I offer my clients a complimentary telephone or Zoom consultation. During the consultation, we discuss your new business plans and objectives. There is no cost or obligation for the consultation. If we decide we are a good fit, I will send you an engagement letter.

I collect detailed information from you about the structure for the new business and make my recommendation regarding the best type of entity for the business. The most common types of Texas entities are:

• Sole Proprietorship (not recommended)
• Limited Liability Company (LLC)
• Series LLC
• S Corporation
• C Corporation
• General Partnership (not recommended)
• Limited Partnership

I will draft the paperwork and file it with the Texas Secretary of State’s office. It is usually processed within a few days. An LLC is the entity type most people select. It offers limited liability with less paperwork than a corporation, including no need to have an annual shareholder meeting.

Once I form the new company, I have a company book published, which includes:

• Book of Stock or Membership Certificates
• Initial Governing Documents
• Minutes and other forms for Initial Organizational Meeting
• Forms for special and regular company meetings
• Extensive state and federal tax information
• Forms and information on transferring ownership
• Embossed Company Seal

Then we can meet, either in person or virtually. I will walk you through the initial organizational meeting and signing all the necessary documents.

To make the formation process as smooth as possible, I offer clients a flat fee to represent them in forming a new business. There are three basic steps in forming your new business:

I like to be up front with clients about how much it costs to hire me. My fee for forming a new Texas entity (Corporation or LLC) is $860. This flat fee covers the customary amount of time to do the work I outlined. My fee does not include the Secretary of State’s fee ($308) or publishing fee ($97) I pay to the publishing company. So, the total is $1,265.

If you need additional legal services as part of starting your new business venture, we can discuss your options, including:

• Buy/Sell Agreements
• Customized, Complex management provisions
• Restrictions on transfer of ownership interests.
• Dispute resolution options
• Succession planning
• Other specialized needs for your business

Fees for Limited Liability Partnerships and Series LLCs are higher.

We will discuss your tax election (whether to be taxed as a corporation or like a sole proprietorship or partnership). You need to discuss this with your tax advisor too. I also provide the forms you need to obtain your federal Employer Identification Number (EIN), which you can do online in about 15 minutes. if you prefer for me to apply for your EIN, there is a $95 fee.

For information about the various types of business entities under Texas law, click here.