What Is A Limited Partnership?
A limited partnership is just another type of partnership. It is different from a general partnership because it has both general partners and limited partners. A limited partnership is also considered a distinct entity from its partners.
What Is An Subchapter-S Corporation (S-Corp) And Do I Need It?
Oftentimes, I have clients come to me asking for an S-Corp, not knowing what this really means.
An S-Corp is not a different form of corporation, but rather a special tax treatment of one or more standard Texas corporations. The incorporation with the Texas Secretary of State actually has nothing to do with the S-Corp status.
A primary reason for incorporation is to protect your personal assets from claims of creditors of the business. You want to be able to keep your personal assets if you can’t pay the bills of the business, or have some other large liability claim against the business not covered by insurance.
A sole proprietorship is a business operated by one individual (or a couple). The business is considered an extension of the individual (or couple), not a separate entity. The business profits and losses are included on the individual's personal tax return, and the individual retains personal liability for the business debts and lawsuits.
A corporation is a separate legal entity from its owners. A corporation can be owned by one person or many people. The corporation is formed under the laws of the state in which it is operating, with Articles of Incorporation or Certificate of Formation.
Do you know how the new FLSA overtime pay rules affect non-profit organizations?
If you are a non-profit organization and are concerned about how the new FLSA overtime pay rule will affect your organization, please view the Dept. of Labor’s Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act and Overtime Final Rule and the Non-Profit Sector. These documents explain individual coverage, enterprise coverage, as well as white collar exemptions under the FLSA.
Download documents by clicking the links below.
There are a number of possible benefits to incorporating a business or forming a Limited Liability Company (LLC), including personal asset protection, business credibility, and possible tax advantages. Incorporation also offers greater confidentiality as to who the investors, officers, and all but the initial directors are than other business formations. However, you must follow corporate formalities after incorporation to maintain the “corporate veil” of protection and benefits of incorporation or LLC formation or they can be lost. There are possible downsides to incorporating also, which should be considered.