Business planning, whether for a single individual or multiple interested parties, involves many facets. From formation of the correct legal structure and mandatory filings to the procedural structure necessary for day-to-day operations; having a well-structured business plan is imperative to the success and efficiency of the business.
LIMITED LIABILITY COMPAny AND CORPORATIONS
Forming a corporation in Texas requires submitting mandatory filings with the Secretary of State. The specific filings that are required with the State are determined by the services and/or products the proposed company will offer.
OPERATING AGREEMENTs and by-laws
Whether a business will need an operating agreement or by-laws is determined by how the business is structured. These documents will dictate how the business will be managed and operate.
A buy/sell agreement is primarily used when there are co-owners of a business. This agreement stipulates the actions the business must take in the event of one owner passing away or leaving the company.
Formation of a company is the first step towards insulating personal assets from business liabilities. Once the company is formed, assets that are used by the business must be re-titled to the name of the business if being held personally in order to benefit from the protections afforded by the company.