entities

There are many different types of entities that have limited liability in
Texas. We recommend that you speak with an attorney and a CPA to
determine which entity is best for you. The decision has both liability
and tax implications. Here is a list of the most widely used basic
types of entities in Texas.

Sole Proprietorship

A sole proprietorship does not have limited liability. The owner(s)
may have personal liability. We rarely recommend this type of entity.

General Partnership

A general partnership is an association of two or more persons to
carry on as co-owners of a business for profit. The owners may have
personal liability.

Corporation

A corporation has limited liability and an unlimited life. This is most
often the entity of choice in Texas. For more information on Texas
corporations, see our article entitled Do I Need To Incorporate?

S Corporation

An S corporation is a regular corporation that elects S status with the
Internal Revenue Service.

Limited Liability Company

This entity has limited liability but is most often treated like a
partnership for tax purposes. This type of entity is often utilized for
the ownership of real property.

Limited Partnership

A limited partnership consists of at least one general partner, who
assumes liability, and limited partners, who do not assume liability.
Our usual recommendation is to have a corporation serve as the
general partner. This type of entity is often utilized for real property
ownership where there are limited partners that have no control over
the business except for financial contribution.

Professional Corporation

A professional corporation is a corporation organized for the sole
purpose of rendering professional services, i.e., attorneys, CPA's, etc.
The owners in the professional corporation must all have the required
professional license.

Professional Association

A professional association is utilized by doctors. It has limited
liability.

Non-profit Corporation

A non-profit corporation has limited liability and must not distribute
any income to members, directors or officers.

Registered Limited Liability Partnership

A registered limited liability partnership limits the liability among and
between the partners.

For more information, contact us.

Not Certified by the Texas Board of Legal Specialization