Choosing a Business Entity

Selecting the Right Business Structure

Starting a business is an exciting venture, but many entrepreneurs do not realize that from the moment they begin operating their business they are exposed to many potential debts and liabilities. The type of entity you choose for your new business will determine what type and how much protection you and your business partners or shareholders have from the business’s debts and liabilities. Hiring a small business attorney allows you to have a professional who can inform and advise you about the advantages and disadvantages of each entity type for your business. The attorneys at West & West, Greer & Estorga can help small business owners throughout Texas, including Central Texas, South Texas, the Texas Hill Country, San Antonio/Bexar County, Seguin/Guadalupe County, Kerrville/Kerr County, Bandera/Bandera County, New Braunfels/Comal County, and Boerne/Kendall County determine which business entity is best for them.

The entity you choose determines your liability and protection from debts….

What types of business entities can I choose from?

There are many types of business entities to choose from. Some of the most common business entities are:

What should I consider when choosing a business entity?

The first and foremost consideration when choosing a business entity should be what type of entity structure you (and your business partners) would like and how much protection from business debts and liabilities you want. Aside from debt and liability protection, some additional considerations to keep in mind are:

Industry requirements: Some industries (such as law and healthcare practices) require business owners to have a professional license of some sort to own a business. This may limit the types of business entities available to you.
Tax Benefits: The tax consequences of each type of entity vary and can significantly impact the growth of your business.
Marketability: If you have plans to sell your business shortly after starting it, the type of business entity you choose may impact the marketability of your company.
Business Partners/Investors: Are you the only owner of your new business or will you have business partners or investors? The answer to this question may have an impact on which type of entity is best for your new business.

Hiring a small business attorney allows you to have a professional to discuss these and other considerations with to help you choose the best entity for your business goals.

If you are thinking about starting a new business or need a lawyer to help with your existing business contact us today.