What Factors Should I Consider When Choosing A New Business Entity?
The good thing about doing an entity right away is it allows you to avoid self-employment tax. You do have to pay yourself a reasonable salary. It’s not really a tax shelter but it gives you some flexibility in how you apportion your income. You want to look at having some sort of entity, especially if you employ people, because your personal assets could be liable if one of your employees hits someone with a car, breaks a window, or causes some other damage. If you are a sole proprietor and you’re employing individuals, your personal assets can be liable for that.
In the state of Texas, we recommend either an LLC, a corporation, or a professional association. Some people would rather do a limited liability partnership, but sometimes that doesn’t allow for scaling because once you lose a partner, you might not have a partnership anymore. You have to consider what your business activity is. If you have people driving trucks, your potential for liability is far greater than if you’re making decorated socks in your garage. You really have to evaluate what the potential for liability is. You also have to look at your long term plan. Your goal is to not be a small business anymore. Your goal is to grow. Five years from now, if you don’t have a plan in place, you might end up spending a whole lot more money on an attorney than you would have if you had addressed it at the beginning.
What Are Some Resolution Options In Business Dispute Cases?
A bird in the hand is worth two in the bush. Even if we get a $20,000 judgment against someone, collecting that money can often be a problem. Texas has exemptions for personal property. On the defense side, we’re also looking at the possibility of mediation. We make an offer and it’s always negotiation terms. We refer to that as the best alternative to a negotiated agreement. We could go to trial and we may have a good case, but you’re going to spend $10,000 or more just on the attorney fees. Sometimes, paying or accepting a settlement is more cost effective.
What Happens If I Am Served With A Complaint? What Steps Should I Take?
In the state of Texas, you have to answer a lawsuit by the Monday following 20 days after you’ve been served. If you don’t, you risk having a default judgment found against you, which would basically mean that the court would take everything in the complaint as true. You want to speak to an attorney, who can help you deny the allegations. Attorneys have all sorts of tools in our arsenals that the lay person doesn’t know about, which we can use to help you through a lawsuit.
Additional Information On Civil Litigation In Texas
Every case is different and civil litigation is very discovery dependent. It’s all about asking the right questions and either proving your cause of action, proving your affirmative defense, or showing that their cause of action doesn’t have any evidence. You want an attorney who understands that. You don’t want to go it alone because there are intricacies that lay people don’t know about. If you’re a business entity, you are required to have an attorney. People hate attorneys but in the long run, we are there to protect you from yourself. It costs a lot more to undo something than it does to do it right the first time.