Entity Formation in Montgomery County, TX

• Entity types and when to use them

  • Limited Liability Company (LLC): Popular for flexibility, pass-through taxation, and strong liability protection. Ideal for small businesses, rental properties, and professional practices.

  • Corporation (C-Corp or S-Corp): Offers formal structure, easier access to capital, and potential tax advantages. Common for businesses planning significant growth or outside investment.

  • Partnership (General or Limited): Useful when two or more owners share control and profits. Requires clear agreements to avoid disputes.

  • Sole Proprietorship and DBA: Simplest option but offers no liability shield. We help evaluate whether upgrading to an LLC makes sense.

• Formation process and filings

  • Name availability search and reservation with the Texas Secretary of State.

  • Drafting and filing Articles of Organization (LLC) or Articles of Incorporation (Corporation).

  • Obtaining an Employer Identification Number (EIN) from the IRS.

  • Registered agent designation to ensure compliance notices reach you.

  • Initial franchise tax and annual report guidance to keep your entity in good standing.

• Montgomery County considerations

  • Local permits, zoning, and assumed name filings where required.

  • Coordination with Montgomery County Clerk for any local registrations.

  • Guidance on Texas-specific liability protections and homestead interactions.

  • Aligning entity structure with real estate holdings, mineral rights, or family trusts common in the area.

• Beyond formation: setting up for success

  • Operating agreements (LLC) or bylaws and shareholder agreements (Corporation) that define roles, profit splits, and exit paths.

  • Banking resolutions and account setup support.

  • Guidance on separating personal and business finances to maintain liability protection.

  • Coordination with CPAs for tax elections and bookkeeping structure.

Common questions we address:

• LLC or S-Corp—which is better? It depends on your income, growth plans, and tax situation. We'll outline the trade-offs and connect you with tax advisors if needed.

• Do I need an operating agreement if I'm the only owner? Yes. A clear agreement strengthens liability protection and simplifies future transitions or sales.

• How long does formation take? Most Texas filings process within a few business days to two weeks, depending on filing method and state workload.

Guarantees and unique offerings:

• Transparent, flat-fee formation packages for most entities.

• Coordination with your CPA or financial advisor to align structure with tax strategy.

• Local insight into Montgomery County permits and compliance requirements.

Once your entity is formed, the next critical step is documenting how it operates—especially if you have partners or plan to bring on investors. Clear internal agreements prevent disputes and protect everyone's interests.

For general background on business entity types and their legal characteristics, some entrepreneurs find it helpful to review a neutral educational resource before their first meeting.

A concise overview can clarify terms like "limited liability," "pass-through taxation," and "piercing the corporate veil." One such reference is available here: https://en.wikipedia.org/wiki/Types_of_business_entity. While not a substitute for tailored legal advice, it provides useful context for understanding your options under Texas law.