Starting a business in Texas involves more than filing formation documents with the state. The entity you choose can affect ownership, management, liability, taxes, future investment, and what happens when owners disagree or decide to leave the business.

San Miguel Attorneys P.C. helps entrepreneurs and companies throughout the Greater Houston area form businesses with their long-term plans in mind. We also advise Mexican entrepreneurs and companies establishing operations in Texas, providing cross-border guidance from attorneys familiar with the legal and business environments of both countries.

The decisions made when forming a company can shape how it operates for years. San Miguel Attorneys helps clients look beyond the initial filing and consider how the business will be owned, managed, financed, and positioned for growth.

We can assist with:

  • Selecting and forming the appropriate Texas business entity
  • Establishing ownership and management structures
  • Preparing operating agreements, bylaws, and other governance documents
  • Addressing cross-border ownership and business considerations
  • Planning for future investors, ownership changes, and growth

We are here to help you establish a structure that works for the business you are creating today while accounting for where you want it to go. Contact us today to get started.

Which Business Entity Should You Form in Texas?

The right entity depends on your business model, ownership structure, financial plans, and long-term goals.

A limited liability company (LLC) provides liability protection while allowing considerable flexibility in ownership and management. LLCs are a common choice for entrepreneurs, closely held businesses, and real estate ventures.

A corporation has a more formal governance structure involving shareholders, directors, and officers. This structure may be appropriate for businesses that expect to attract investors, issue shares, or pursue specific growth strategies.

Texas also recognizes several forms of partnerships that may suit businesses with two or more owners, depending on their liability and management needs.

Entity selection can also have significant tax consequences. A business attorney can work with your tax professionals to help determine which legal structure supports your broader plans.

What Should You Decide Before Forming a Business?

Some of the most consequential formation decisions happen before anything is filed with the Texas Secretary of State.

Founders should determine who will own the business, how ownership will be divided, who has decision-making authority, and how capital will be contributed. They should also consider what happens if another investor joins, an owner wants to leave, or the owners cannot agree on an important decision.

Addressing these questions early can reduce uncertainty and help prevent disputes as the company grows.

What Documents Does a New Texas Business Need?

Filing a Certificate of Formation creates a Texas entity, but that document does not establish all of the rules governing the relationship among its owners.

Depending on the entity, additional documents may include an operating agreement, corporate bylaws, shareholder agreements, organizational resolutions, ownership records, and other governance documents.

These agreements can establish voting rights, management authority, ownership transfer rules, procedures for admitting new owners, and methods for addressing disputes.

Generic forms may satisfy basic filing requirements. Carefully prepared governance documents can provide a much stronger framework for running the business.

Can Mexican Entrepreneurs and Companies Form Businesses in Texas?

Yes. Mexican entrepreneurs and businesses can establish and own Texas business entities, subject to applicable state and federal requirements.

Cross-border formation, however, can raise additional considerations involving ownership, governance, contracts, tax planning, banking, and the relationship between U.S. and Mexican operations.

San Miguel Attorneys has attorneys licensed in both the United States and Mexico. This allows us to help Mexican clients evaluate Texas business structures while considering the broader realities of operating across the border.

What Happens After Your Business Is Formed?

Formation is the beginning of the business journey. Growing companies may soon need assistance with commercial contracts, employment matters, real estate, regulatory compliance, corporate governance, financing, and disputes.

For companies that need regular legal support, our Chief Legal Officer (CLO) Program provides ongoing services, including contract review, corporate minutes, legal audits, notarizations, and general business counsel.

Start Your Texas Business With a Strong Foundation

A well-planned business structure can make it easier to manage growth, bring in new owners, protect investments, and address challenges as they arise. Contact San Miguel Attorneys to discuss forming or expanding your business in the Greater Houston area. Hablamos tu idioma.

Frequently Asked Questions

Should I form an LLC or corporation in Texas?

The answer depends on factors such as the number and type of owners, management preferences, tax considerations, plans for outside investment, and long-term growth strategy. LLCs offer considerable flexibility, while corporations provide a more formal ownership and governance structure. Legal and tax guidance can help you determine which structure fits your plans.

How much does it cost to form an LLC in Texas?

The Texas Secretary of State currently charges a $300 filing fee for a standard LLC Certificate of Formation. Other costs may include registered agent services, professional fees, licenses, permits, and expenses associated with preparing governance documents.

Can a Mexican citizen or company own a Texas LLC?

Yes. Texas generally does not require an LLC owner to be a U.S. citizen or Texas resident. Foreign ownership can introduce additional federal tax, banking, reporting, and cross-border considerations, so those issues should be evaluated as part of the formation process.

Do I need an attorney to form an LLC in Texas?

Texas does not generally require you to hire an attorney simply to file an LLC Certificate of Formation. Legal counsel can be valuable, however, when deciding how the company should be structured, dividing ownership and control, preparing an operating agreement, planning for investors, or addressing cross-border ownership.