Texas Business Law. The state of Texas is one that has been recognized as being one of the best for both small businesses and startups due to factors such as low business taxes, zero income tax, and a rather friendly state economy. Despite this, it’s important to not be too hasty when it comes to moving to Texas and starting a business. This is because there are many different legal considerations to make note of.
In Texas, there are many different types of legal business structures that you can utilize. All of these feature specific benefits and drawbacks, as the specific business structure that you choose will impact your tax obligations and personal liability as the owner of a business.
The four most common types of major business structures include the following:
Partnership (general, limited, Limited Liability Partnership)
Limited Liability Corporation
Many businesses in Texas are subject to state business taxes. Some of these are specific to the type of goods or services that you offer at your business. The business tax liability of an owner is something that will be contingent upon the business structure itself. There is also the franchise tax, which is the main business tax in the state of Texas. A number of businesses, with the exception of specific partnerships and sole proprietorships, are liable for the franchise tax itself, which is taxed for the ability to do privilege in Texas. While the tax rate is less than a percent in the state, this also varies depending on the specific type of business.
Other forms of business taxes include the following:
Texas Business Law. Small business owners are always recommended to obtain assistance with any and all legal matters. This is because in the event a business is ignored or mishandled, then the business itself can be at a huge risk of failing. Issues including defense against claims of wrongful termination and negotiating another company’s assets are cases that are more complex and time-consuming, so hiring an experienced business law attorney will help you to prevent any and all further legal issues.