Question.How will my business partner's divorce affect the LLC we have together? Answer. In Texas, a member's interest in an LLC may be community property; however, a member's rights under the Operating Agreement (e.g., right to participate in the management of the...
Question: What is a Sole proprietorship? Answer. The most common and the simplest form of business is the sole proprietorship. In a sole proprietorship, a single individual engages in a business activity without necessity of formal organization. If the business is...
Question: What is an "S" Corporation? Answer: An “S” corporation is not a matter of state corporate law but rather a federal tax election. A for-profit corporation elects to be taxed as an “S” corporation by filing an election with the Internal Revenue Service. For...
Question: What is a Texas Limited Partnership? Answer: A Texas limited partnership is a partnership formed by two or more persons and having one or more general partners and one or more limited partners. The limited partnership operates in accordance with a...
Question. What is a DBA and when do I need one? Answer. A DBA is short for "Doing Business As." This is a legal declaration that your company is doing business another another name. For example, ABC Corporation d/b/a ABC Trucking. In Texas, the DBA is often referred...
Question: Answer: A Texas limited liability company is created by filing a certificate of formation with the Texas Secretary of State. The Secretary of State provides a form that meets minimum state law requirements. The limited liability company (LLC) is not a...
Question: What is a Corporation? Answer: A Texas corporation is created by filing a certificate of formation with the Texas Secretary of State. The Secretary of State provides a form that meets minimum state law requirements. A corporation is a legal person with the...
Question: What is a General Partnership: Answer: A general partnership is created when two or more persons associate to carry on a business for profit. A partnership generally operates in accordance with a partnership agreement, but there is no requirement that the...
