Business Formation Attorney in Arlington

Business Entities for New Small Businesses

The business entity of choice for new small businesses tends to be a limited liability company, usually referred to as an “LLC.” But this is not always true; in some situations, based on the company’s ownership, a limited partnership or a corporation may be better. Our experienced Arlington business formation attorneys can help you determine which entity is right for your new small business.

An LLC provides flexibility in management and is generally seen as less burdensome when it comes to administrative requirements. Meanwhile, a corporation might offer benefits in terms of credibility and easier access to capital. Our attorneys will consider various factors such as your business's nature, your vision for the company's future, and potential growth opportunities to recommend the best structure.

Helping You Develop a Written Operating Plan

While business entities protect business owners from outside suits, business owners use operating plans to control internal relationships.

Operating plans are contractual documents that establish:

• Lines of management
• The responsibilities of each owner
• Methods of ownership change
• Financial practices

Entities that do not have a written operating plan experience a much higher rate of internal strife and business failure.

We often see businesses that are failing because they were created by family members with no written contract between the owners. This might be two brothers, an aunt and a niece, or even forty-year friendships established between high school locker mates. In all these cases, Norred Law, PLLC has had to represent individuals in lawsuits that were the direct result of a missing document that would have eliminated the dispute by putting the understanding between them on paper.

Allow our team to help you develop a written operating plan so that you can avoid future problems.

A well-crafted operating plan not only minimizes the risk of internal disputes but also sets a clear roadmap for decision-making processes and conflict resolution. This ensures that all partners have a shared understanding of business operations, goals, and strategies, which is crucial for smooth functioning and long-lasting partnerships.

Make an appointment to speak with a business formation attorney near you. Dial (817) 500-9433 or complete our online form to secure a consultation.

What Is A PLLC?

PLLC stands for Professional Limited Liability Company. It is a type of business that is specifically for licensed professionals such as lawyers, doctors, architects, and accountants who wish to form a limited liability company (LLC) but they are subject to licensing requirements and professional regulations.

Owners (or members) of a PLLC are personally liable for their own professional negligence or malpractice. However, if there is more than one member of a PLLC, one member cannot create liability for the rest of the members. There is a layer of protection for each member.

A PLLC combines the liability protection of an LLC with the professional licensing requirements necessary for certain fields, providing a structured approach to managing operational risks without compromising professional standards. It’s important to understand the state-specific legal requirements and restrictions involved in forming a PLLC to ensure compliance with all regulatory standards.

The Difference Between an LLC & PLLC

Within an LLC (limited liability company), anyone can be an owner or member of the business, whereas a PLLC must only have professionals or at the very least have a certain number of members who must be licensed professionals. Otherwise, in regard to flexibility in management and taxation, LLCs and PLLCs are the same.

There are no restrictions when it comes to the number and type of members an LLC or PLLC may have and both do not have their own federal tax classification. They may adopt the tax status of sole proprietorships, partnerships, S corporations, or C corporations. They may also take advantage of “pass-through” taxation, which means they do not pay corporate taxes. Instead, income and expenses pass through members’ personal tax returns and they pay personal income tax on profits.

Choosing between an LLC and a PLLC often depends on the professional nature of the business and specific state laws that govern professional practices. Understanding these differences can aid in deciding the most advantageous structure for your business regarding liability and tax implications.

Ensuring Contracts & Change Orders Are Documented

Legal disputes are often the result of business partners who have made a change in the way that they work together but have not put the new understanding in writing.

Whether it is a construction change order or a commission rate change in a sales representation contract, your business needs to be documented correctly. Working with our Arlington business formation lawyers can help you establish practices to minimize your exposure to problems caused by improper documentation.

Proper documentation not only clarifies expectations but also provides a clear record of agreements and changes, which can be crucial in resolving disputes amicably and legally. Maintaining thorough and accurate records is a proactive approach to safeguarding your business and ensuring continuity during unforeseen challenges.

Frequently Asked Questions

What Are the Initial Steps in Business Formation in Arlington?

Beginning a business formation in Arlington involves several key steps that can establish the foundation for your success. Initially, you must decide on the type of business entity that suits your objectives. Consider aspects like liability protection, tax implications, and management flexibility. Once determined, you will need to register your business with the Texas Secretary of State. Obtaining an Employer Identification Number (EIN) from the IRS is the next critical step for handling taxes efficiently. Depending on the nature of your business, you may also need to secure necessary permits or licenses from the City of Arlington.

Moreover, drafting a comprehensive business plan serves as a roadmap, outlining your company’s goals, strategies, and projected financials. This plan not only guides your business operations but is also instrumental when seeking funding. At Norred Law, PLLC, our team is ready to assist you through each phase, providing strategic support and legal guidance tailored to the Arlington business landscape.

How Can I Protect My Business's Intellectual Property in Arlington?

Safeguarding your business’s intellectual property (IP) in Arlington is paramount to maintaining a competitive edge. IP includes intangible assets like trademarks, patents, copyrights, and trade secrets. To protect these, you should begin by identifying the specific types of IP integral to your business. Trademarks can secure your brand identity, encompassing logos, slogans, and names. Patents protect unique inventions, while copyrights cover creative works such as literature and art.

Registering your IP with the United States Patent and Trademark Office (USPTO) or the copyright office provides legal protection against unauthorized use. In Arlington, involving a knowledgeable business formation lawyer from Norred Law, PLLC ensures that the process is navigated effectively. Additionally, nondisclosure agreements (NDAs) and non-compete clauses are critical tools to guard proprietary information shared with employees or partners. Our team can advise you on which protective measures best suit your business needs and help draft legally sound agreements.