When did the changes to corporations, limited liability companies, and limited partnerships take effect?
Although the Texas Legislature enacted the revisions to corporations,limited liability companies, and limited partnerships during the last legislative session, the new statutes become effective as of January 1, 2006. Many of the revisions actually work to streamline your operations. The new statute is called the Business Organizations Code.
What should I expect to pay for an attorney to set up my new corporation or limited liability company?
Most attorneys set up new corporate entities (corp or LLC) on a cost-plus basis such as $1000 plus filing fees, or an hourly rate fee. Presently the Texas Business Organizations Code have now set the filing fee for both Corps and LLCs at $300, and the other third party fees are about another $450. A limited partnership is a little more complex, and the filing fees for that type of entity is $750. Our firm elects to charge a fixed rate for corporations and limited liability companies so that you can better budget the project, at $1500.00 with all costs included: all Sec/State filing fees and special handling fees, FedX charges, corporate book, documents, etc. No surprises; no upcharges. Our goal is that your new business will be wildly successful, and you will have great fun, resulting in other legal requirements for corporate growth!
But can’t I go on the Internet and file my own new corporate entity?
Sure you can. And if you are very knowledgeable with the legal issues, you may be fine. However, an attorney will be able to assist in several other important areas, such as (i) including restrictions in the bylaws on the ability of shareholders to sell out except with a first right of refusal, (ii) ensuring that your first money invested in the corp is a loan, and not a capital investment, (iii) preparation of your promissory note from the corporate entity back to the shareholder, (iv) preparation of your organizational minutes, (v) setting up the buy-sell agreement when you have multiple shareholder-members, (vi) etc., etc.
How quickly can you set up my new corporate entity? I’m ready with my new project NOW!
With some of the latest innovations at the Secretary of State’s office, I can typically send your filing out by FedX overnight, and have a fax copy of the Certificate of Organization back the next afternoon. This will require payment of the $25 special handling charge to the Sec/State, but you can be ready to set up your bank account that afternoon. Is that fast enough?
Now that you have assisted with my new company, what happens next?
Over time, I’ve become disenchanted with merely sending the new business owner out the door, with nothing more than his/her new corporate book. Most accountants agree that 30 days later, nothing is signed, no organizational minutes were signed, but the business owner believes all is well. So, I’ve initiated the Corporate Counsel program, to help with the next year of activity.
What is this CorporateCounsel program, and is it for me?
For starters, those clients who enroll in the CorporateCounsel program, take part in a copyrighted process to build their business. Thirty days after you leave my office, we have a meeting with your accountant to ensure all of your corporate protections are in place. In six months or so, we meet with your financial advisor and accountant to discuss avenues of wealth building: SIMPLE accounts, SEP-IRA’s, etc. For the next year, the OneQuickQuestion program means you won’t be “nickeled and dimed” for every call you make to our office for business advise. At the end of the year, we meet again to review the year, work up a plan for next year, what’s been working and what’s not. The goal is to set up a plan to double your own revenue on a planned basis. Please see us for LOTS more detail.
What do you mean by “A Cyclist-Friendly Business Law Firm”?
HA! Well, a few years ago, my entire family decided to get bicycles and train for the MS150 bike event from Houston to Austin. Now we’re hooked. The best part is that we now have a great exercise hobby, and we can use it as a means and a mission to help others. Check out the calendar for events, like the upcoming Blind Bike Ride in the fall.
Blind Bike Ride? How’s that again?
It’s great fun, and just as rewarding. We bike on tandems, with the blind rider on the back (called the stoker), and the sighted rider up front (the captain). The first ride was in September 2006, when we ran with 21 tandems on a 20-mile circuit in the Katy-West Houston area. It was an unbelievably rewarding morning, for non-sighted and sighted alike. Give me a call if you’re interested for the next event. We’re on the lookout for crazy bikers, donors, volunteers at rest stops, and everything else. You won’t regret one moment.
Has a closing date been set?
No, we’re waiting for the title policy.