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by JALLEN
Sat Jan 12, 2013 12:02 pm
Forum: Instructors' Corner
Topic: Forming LLC's
Replies: 7
Views: 1713

Re: Forming LLC's

You definitely need to be briefed on the various tax ramifications, and there are many good CPA's out there who can get you off to a good start, but you also should start with a local attorney you can trust who can review for you the various ramifications and limitations of the arrangement, compare LLC vs. corporate status, etc.

It is somewhat more complicated that merely filling out some forms for the Secretary of State and paying a fee.

Being an LLC is certainly not a magic shield that protects you from all care and woe, and you might find that it is relatively worthless in particular situations. If you have employees, an entity can protect you personally, as the owner, from some liabilities of the business arising out of the employees acts or omissions, but probably won't protect you from the impact of your own acts or omissions. There are a great many more situations to think about, including what insurance covereages you ought or will be required, to have.

I don't play a lawyer on TV. I am one, but in California. I've also been involved in a dozen or more corporations and LLC over the years, as an owner, officer, director, etc. I'll let a Texas lawyer provide whatever details or nuances are involved there. But just so you know, when a commode gets stopped up, I call a plumber, if you get my drift. ;-)

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