Business Entity & Asset Protection Articles

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  Choosing Between a Corporation and an LLC for Your Business
  Starting a business is a big step, and choosing the right business structure is a critical component of that process. Deciding between a corporation and a limited liability company (LLC) can be a difficult task, as both have their own unique advantages and disadvantages. In this article, we’ll explore the key differences between corporations and LLCs and help you determine which one is right for your business. Advantages and Disadvantages of a Corporation A corporation is a separate legal entity from its owners, which provides liability protection for shareholders. This means that shareholders are only liable for the amount they… Continue reading Choosing Between a Corporation and an LLC for Your Business
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  Sole Proprietorship vs LLC: Which is Right for Your Business?
  Starting a business is a big decision, and choosing the right business entity is a critical step in that process. Two of the most common business structures are sole proprietorships and limited liability companies (LLCs). There are a number of pros and cons associated with each type. This article will help you understand the differences between the two and determine which one is the best choice for your business. What is a Sole Proprietorship? A sole proprietorship is a business structure where a single individual owns and operates the business. This type of business structure is simple to set up… Continue reading Sole Proprietorship vs LLC: Which is Right for Your Business?
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  The Interplay of Buy-Sell & Non-Compete Terms
  The intent of drafting business agreements is often to avoid disputes. One cannot always anticipate every type of dispute that can arise. This is where experience comes in, as some disputes are recurring and can be avoided. A buy-sell agreement that is not coordinated with the terms of a non-compete agreement is an example. This type of dispute often leads to disputes between partners. The recent Bihner v. Bihner Chen Eng’g, No. 01-21-00086-CV (Tex. App.–Houston [11th Dist.] 2021) case provides an opportunity to consider this issue. Facts & Procedural History This case involves a Texas limited partnership formed by a… Continue reading The Interplay of Buy-Sell & Non-Compete Terms
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  When to Issue Preferred Shares
  Preferred shares are a type of equity security that represents ownership in a company. Businesses can use preferred shares to raise capital by issuing them to investors in exchange for money. The investors become shareholders in the company and are entitled to fixed dividend payments and potential appreciation in the value of their shares. By issuing preferred shares, businesses can raise capital quickly without incurring debt or giving up control to outside investors. Preferred shares can be a useful tool for businesses to raise capital, but they also come with some limitations and risks. For example, fixed dividend payments may… Continue reading When to Issue Preferred Shares
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  Why You Should Always Hire a Texas Registered Agent
  Business is hard. There are a lot of tasks and details that one has to attend to for the business to thrive and be successful. The business owner cannot do everything. Some tasks and details will be missed. Business owners often have to triage their tasks, doing only what is necessary to get through the day. This is why outsourcing certain tasks not only makes sense. In fact, failing to outsource can jeopardize the business. Outsourcing your resident agent for your legal entity is a task that should always be outsourced. The cost to hire a registered agent is nominal… Continue reading Why You Should Always Hire a Texas Registered Agent