Published on July 31, 2014
Forming An LLC in Texas: Forming An LLC in Texas Start Texas Corp Start Texas LLC Texas Corp Faq Texas LLC Faq Texas Filings LLC Has Pros and Cons but It Is Always a Good Bet In The Place Of Sole Proprietorship: LLC Has Pros and Cons but It Is Always a Good Bet In The Place Of Sole Proprietorship You have decided upon everything and the next step that is left to do is just forming an LLC company and before starting an LLC in Texas you want to be well aware of the pros and cons that LLC brings with itself then in this article you will come across the pros and cons that will help you become decisive whether you want to opt for a LLC business or not. If you have decided that forming an LLC in Texas can help you earn more and lead a better standard of life or if your friend in the neighborhood is suggesting you that starting a business along with his colleagues who have opted to leave their job and start a business on their own can be very useful then you must be well aware that starting an LLC brings with itself both blessings and punitive prospects. So, if you want to set up your business in Texas then first you must know about the pros and cons that these LLC offers. Let us first start with the pros. If you are forming a LLC and that too in Texas then you get a lot of flexibility in its operation. The best thing is that it needs no special incorporation and starting the company is as easy as a downloading a file from internet. The Texas government in order to facilitate easy formation has provided leverage to form the company online without much trouble. PowerPoint Presentation: Another important fact about starting an LLC is that it doesn’t follow the formal channels for its operation so you get the advantage of quick decision taking and it is free from all types of red tapism . You don’t always need to furnish important documents so you get the ease of operation. Adding further to the facts, most important glaring aspect about starting a LLC in Texas is that your personal asset is free from any kinds of burden in case the company incurs losses. Your personal assets will never be attached to pay the share holders in case the company has incurred losses. Now it is the turn of the cons to be reflected for public. There is restriction to the total number of the members that can take part for forming a LLC or starting a LLC business. The total members in the formation should exceed 20 as per the company law of Texas. And if you want to hire a manager to manage the working of the company then you need to pay in extra to finance the salaries of the manager from the companies earning. There is also no provision for apportionment of profits and losses among the members and at the same time there is a restriction on raising the capital so in that case you find it difficult to conduct an easy operation to exploit new horizons in the business.