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Business Entity Comparison, C-Corp vs. S-Corp
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Incorporate in Texas or form a texas limited liability company

There are many reasons to form an LLC or Incorporate in Texas

Most business owners’ primary reason behind forming a business entity is to safeguard their personal assets by separating them from their business liabilities.  When you Incorporate in Texas or form a Texas LLC and it is properly maintained, the business owner can create a shield from liabilities that could otherwise adversely affect their personal assets such as homes, savings, or even their cars.

While asset protection is the cornerstone reason for most business owners, there are numerous other advantages to forming an LLC or to Incorporate in Texas, including:

LLCs and Corporations provide these advantages

Increased Personal Privacy
Tax Planning
Business Flexibility
Raising Business Capital
Continuity of the life of business entity

LLCs provide additional advantages such as:

No Federal Income Tax on LLC
Flexibility of allocating income and tax deductions among members
Members can have management responsibility
Minimal limitations on ownership qualifications
Multiple ownership levels are possible

It is important to note that when forming a Texas LLC or Corporation, The Texas Franchise Tax Board does require an annual Franchise Tax Filing, also known as the Margins Tax, and an accompanying Public Information Report which is filed with the Secretary of State. Additionally, a Business License may be required depending on the type of business and the location. It is always a good idea to consult with the local tax authority when starting a business in Texas.

Those business owners looking for an increased level of asset protection, tax options and privacy protection may want to consider forming their business in either Nevada or Delaware and qualifying their business in Texas. Nevada and Delaware are known as states with the most business friendly legal environment. For further information on forming a corporation or LLC in Delaware or Nevada, call CenterPoint Corporate Services at 877-901-5800 and ask to speak with a client representative.

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