The Corporation

The Corporation is good for many different businesses, especially if the business will become publicly traded, issue stock, needs statutory rules to ensure compliance, or if the business will be in certain fields. The Corporation offers limited liability protection, is perpetual in duration, and mandates more centralized and prescribed function.

Corporations have been around a long time, they are usually the most well known entities, and are expansive in their capabilities. A corporation is much like a LLC in liability limitation but is much older and has more concrete and non-waivable statutory requirements than a LLC. Like the LLC, a corporation is able to limit liability of the corporation and personal liability. A corporation is not as flexible as a LLC but it is much more structured, which is generally a great and needed asset. With “check the box” provisions corporations are able to be taxed as a partnership as long as certain criteria are met.

Form and incorporate today!

You should be a federally recognized non-profit organization due to the federal and state benefits, purchasing and sale benefits, as well as the confidence and comfort of your members.

There are many different types of non-profit corporations. If you are a religious organization (church) you most likely will fall under the IRC 501(c)(3) requirements. Obtaining a state and federal non-profit recognition allows your organization to be recognized and obtain benefits and tax-deductible donations not otherwise available to your organization. Being recognized as a non-profit organization allows others to donate money or items and to be comfortable and more likely to do so.

Be a recognized non-profit corporation today.

One of the greater business structures: a Texas Limited Liability Company (LLC) is a hybrid business entity formed under the Texas Business Organizations Code (BOC) that combines the personal liability protection of a corporation with the pass-through tax treatment and operational flexibility of a partnership. Owners, known as members, are generally not personally liable for the company's debts or legal obligations. There are also check the box provisions that allow a LLC to be taxed as an S-Corp, possibly providing greater savings on taxes. Certain businesses will have to be a “Professional Limited Liability Company” based on the type of business and license requirements to operate.

A LLC may be run with much greater flexibility than a corporation in most circumstances, though proper paperwork and control over finances and necessities are always required. An LLC in Texas may also be a nonprofit LLC; however with this is a word of caution: the IRS rarely grants LLC’s 501(c)(3) exempt status. Although if operating a church 501(c)(3) recognition is not required by law, it does prevent many problems, obstacles, and issues with donations that may otherwise present themselves.

Form your LLC today!

We provide and draft business documents for your needs; whether you have a for-profit or nonprofit business we are here to assist you. Please contact us to discuss what is needed or helpful for your business.

Talk to us about completing your goals and meeting your needs

Is your business or nonprofit in or close to litigation? Do you want to settle the matter outside of court? Are there issues inside the business leadership or with employees that needs mediation and reconciliation? If so, let us help you solve your issues or provide representation and protection for your business.

Contact us for a consultation or for mediation.