Entity Creation: Should I Choose An LLC Or An S Corporation?

Business Entity, Moster Craft

Entity Creation is an easy choice, and the articles out there are so confusing! No need for that as Mr. Moster has been doing this for decades. Please stay away from online services which are not comprehensive! We are VERY affordable!

Choose an LLC (Limited Liability Company) – Easiest To Run and Least Expensive

Right choice 99% of the time. It has the same benefits as a corporation but is easier to run and has almost no paperwork! It also provides complete protection against personal liability.

  • One person can set up an LLC and serve in all roles!
  • Issues Membership Certificates which are just like stock.
  • Select the name you want if available with the Texas Secretary of State.
  • Comes with a company agreement if you have a partner!

WE DO IT ALL – draft documents, register name with Texas, get EIN from IRS, hold meetings to get started, go over legal requirements simply, and sign on as your corporate agent.

FLAT FEE – AFFORDABLE – NOT HOURLY!

FAST – up and running usually in 72 hours or less

Choose an S-Corp or Other Entity

In rare situations, we will recommend an S-corporation which is more expensive to operate and requires additional paperwork over LLCs. This occurs about 1% of the time and we can explain, if necessary. We may also recommend other entity structures depending on the situation.

The Moster Law Firm, Business, Law, Lawyer, Attorneys

Texas Business Startup Attorney

Seems like everyone has advice for business startups but not the background to really help.  Come to us for focus and over three decades of experience to help launch your new business startup.  Our list of services in this area is extensive.

  • Startup Entity Choice- This is so confusing for our clients but simple for us. We will recommend immediately our choice whether an LLC, corporation, partnership, and other selections.
  • Partnership Agreements – This is often overlooked as the contract with your partner is critical to success and avoidance of disputes. You can never say you’ve seen it all, but we come pretty darn close!
  • Branding – Registering your name with the Texas Secretary of State does not protect your name in commerce, only a trademark can do that. Never use a trade name without getting a registered trademark or at least make sure that you are not infringing on someone else’s name or logo.  We have seen new startups put out of business by making this mistake.
  • Contracts – Do not – repeat NOT pull down a contract off the web because you have no idea where it has been. Contracts need to be customized and comply with state law.  Cut corners here at your own peril!
  • Employees – You must understand whether your worker is an independent contractor or employee. The law can be confusing and if you make a mistake, you will likely hear from that agency with three letters – TWC – Texas Workforce Commission.  They are not nice.  Oh, same deal with the IRS.
  • Leases – Make sure a lawyer reviews your lease before you sign. You can destroy your profit margin before you finish signing your name.  Let us help!

We are all about supporting new businesses.  It’s one of the most enjoyable things we do at Moster Craft.

Contact one of our offices throughout Texas in Dallas, Austin, Houston, Lubbock, Amarillo, Abilene, Midland, Odessa, and Wichita Falls.

Business Startup Bootcamp – The Three Legal Keys To Success

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