Disclaimer: The opinions given here are based on general fact situations and therefore cannot apply to every situation.  An attorney should be consulted to review your specific circumstances.

Commonly Asked Questions about Business Law

1. I'm starting a new business.  Should I incorporate?

     Most attorneys will tell you that any business should be operated under the liability protection of a corporation or other business entity.  While this advice is not inaccurate, many attorneys fail to appreciate the realities of operating a small business.  Creating and maintaining a corporation costs money.  With a start-up business, these resources could be put to better use keeping the business afloat.  As Bob Dylan sang, "When you've got nothing, you've got nothing to lose."  But when you do have something, you do have something to lose.  Once your business is on firm financial footing, that is the time to focus on protecting the assets you now have.

2. What is the difference between a corporation and a limited liability company (LLC)?

     The state of Texas provides for the creation of a number of business entities from which to choose.  While both a corporation and an LLC facilitate liability insulation, the entity that would be best suited for your needs will be dependent on factors specific to your business, the number of owners of that business, and the nationality of those owners.  For instance, if corporation shareholders choose to operate under subchapter S status, all owners must be U.S. citizens. This limitation does not apply to members of an LLC.