Business Formation Lawyer in Houston, TX

The best business structure for your company in Houston, TX, depends on factors like liability protection, taxation, ownership structure, and future growth plans. Here’s a breakdown of common options to help you decide:

1. Limited Liability Company (LLC) – Best for Most Small Businesses

✅ Personal Liability Protection – Keeps your personal assets separate from business debts.

✅ Flexible Taxation – Choose pass-through taxation (default) or elect S-corp status for tax benefits.

✅ Less Paperwork – Easier to maintain than a corporation.

🚀 Best For: Small businesses, freelancers, real estate investors, and startups wanting liability protection.

2. Sole Proprietorship – Easiest & Cheapest, But No Protection

✅ Simple & Low Cost – No formal filing needed; just start doing business.

✅ Direct Taxation – Business income is reported on your personal tax return.

❌ No Liability Protection – You’re personally responsible for all debts and lawsuits.

🚀 Best For: Low-risk businesses, freelancers, or side hustles with minimal liability concerns.

3. Corporation (C-Corp or S-Corp) – Best for Large-Scale Growth

✅ C-Corp: Best for businesses planning to raise investment and issue stock.

✅ S-Corp: Offers tax benefits (avoiding double taxation) but has ownership restrictions.

❌ More Regulations & Costs – Requires annual reports, strict record-keeping, and more compliance.

🚀 Best For: Tech startups, large businesses, or those seeking outside investors.

4. Limited Partnership (LP) or Limited Liability Partnership (LLP) – For Professional & Investment Firms

✅ LP: General partners manage the business, while limited partners invest.

✅ LLP: Used by professionals like lawyers, accountants, or medical groups for liability protection.

🚀 Best For: Real estate investors, law firms, or financial firms needing partnership flexibility.

Which One Should You Choose?

✔ If you want liability protection & tax flexibility, choose an LLC.

✔ If you have low risk & want an easy setup, a Sole Proprietorship is an option.

✔ If you plan to raise venture capital, go with a C-Corp.

✔ If you’re a licensed professional, an LLP or PLLC may be required.

1. LLC or Corporation Formation

✅ Online Filing (SOSDirect) – 3 to 5 business days (if expedited, additional $25 fee)

✅ Mail Filing – 10 to 15 business days

✅ Expedited Processing – 1 to 2 business days (additional fee may apply)

2. Sole Proprietorship or General Partnership

✅ No formal state filing required – Can start immediately after obtaining local business permits (if needed).

3. Getting an EIN (Employer Identification Number)

✅ Online (Recommended) – Instant approval via the IRS website

✅ Mail or Fax – 4 to 6 weeks

4. Business Licenses & Permits (if applicable)

✅ Varies by industry and location – Same day to several weeks depending on requirements.

Total Estimated Time to Start Operating

🚀 Fastest Timeline (Online LLC/Corp + EIN Online): 3 to 5 business days

🚀 Standard Timeline: 1 to 3 weeks

No, you do not need an attorney to form a business in Houston, TX, but hiring one can be helpful in certain situations. Many entrepreneurs choose to form their business on their own or use a professional formation service to save time and money.

When You Can Form a Business Without an Attorney ✅

💰 LLCs & Sole Proprietorships – You can file the necessary paperwork yourself or use an online service.

📑 Standard Operating Agreement – Many formation services provide customizable templates.

🖥 Online Filing Available – The Texas SOSDirect website allows you to form an LLC or corporation online in 3–5 business days.

📌 DIY Registered Agent – You can act as your own registered agent (or hire a service for $50–$150/year).

When You Should Consider Hiring an Attorney 🔍

⚖ Complex Business Structures – If you have multiple owners, investors, or a unique operating structure.

📜 Custom Contracts & Agreements – If you need a highly customized Operating Agreement, Partnership Agreement, or Shareholder Agreement.

🏢 Regulated Industries – If your business deals with real estate, healthcare, finance, or legal matters that require compliance with specific laws.

⚡ Intellectual Property Protection – If you need trademarks, patents, or copyrights.

📑 Mergers, Acquisitions, or High-Stakes Investments – If you’re forming a company that plans to raise significant capital.

Best Alternative to Hiring an Attorney

If your business is straightforward, you can use a professional formation service to handle:

✅ Business registration (LLC, Corporation, etc.)

✅ EIN (Employer Identification Number) application

✅ Operating Agreement drafting

✅ Registered Agent services

✅ Annual compliance reminder

The cost of business formation in Houston, TX, depends on the type of business structure and additional services you may need. Here’s a breakdown of the typical costs:

Texas State Filing Fees 📑

✅ LLC Formation (Certificate of Formation – Form 205) – $300

✅ Corporation Formation (For-Profit – Form 201) – $300

✅ Nonprofit Corporation (Form 202) – $25

✅ Assumed Name (DBA) Registration – $25 per county

✅ Expedited Filing Fee – $25 (for 3- to 5-day processing)

Total Estimated Cost Range

💰 DIY Formation: $300 – $500

💰 With Professional Service: $600 – $1,500

💰 With Attorney Assistance: $1,500+

Our firm does not provide legal advise or services.

1. Our firm does provide compliance & State Filings

✅ Franchise Tax & Public Information Report – Required for Texas LLCs & Corporations.

✅ Annual Report Reminders – We track deadlines to help you avoid penalties.

✅ Registered Agent Services – We can act as your official point of contact for legal documents.

2. Business Contracts & Agreements ✍

✅ Operating Agreements & Bylaws – Ensure your business structure is legally sound.

✅ Partnership & Shareholder Agreements – Protect your business relationships.

✅ Independent Contractor & Employment Agreements – Safeguard your workforce.

3. Licensing & Permits 🏢

✅ Industry-Specific Permits & Compliance – We help you secure and maintain the right licenses.

✅ Texas Sales Tax Permit & EIN Registration – Ongoing tax compliance assistance.