Build Your Empire on the Right Foundation.
Choosing the right legal structure is the most important financial decision a new business owner makes. Don't leave your personal assets at risk with a "DIY" setup. We build the legal framework for your future success.
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Why "Just Filing the Forms" Isn't Enough
Many entrepreneurs think forming a business is just filling out a form on the Secretary of State’s website or using a generic online service. This is a dangerous misconception.
A Certificate of Formation is just a birth certificate. It doesn’t give you a rulebook.
At Saffold Law, we don’t just file paperwork; we design business structures. We analyze your tax situation, your partnership dynamics, and your exit strategy to recommend the right entity—not just the easiest one. We ensure you have the governance documents (like an Operating Agreement) that actually protect your “Corporate Veil” from being pierced in court.
Common Formation Pitfalls (The DIY Dangers)
Here is why relying on generic templates often backfires:
1. The "Empty Shell" LLC
If you form an LLC but never sign an Operating Agreement, the state of Texas views your company as a “default” entity. In a lawsuit, a judge may rule that your LLC is a sham, allowing creditors to seize your personal house, car, and savings.
2. The Wrong Jurisdiction (Delaware vs. Texas)
Everyone hears they should incorporate in Delaware. But for a local Texas business, this often means paying double the franchise taxes and hiring two registered agents for zero added benefit. We tell you when Delaware is smart—and when it’s a waste of money.
3. The Tax Trap (C-Corp vs. S-Corp)
Choosing a C-Corporation too early can lead to “double taxation” (taxed on profit, then taxed again on dividends). We help you understand when to elect S-Corp status to save on self-employment taxes.
4. 50/50 Partnership Nightmares
Starting a business with a friend? If you split equity 50/50 without a tie-breaker clause, your business is one disagreement away from paralysis. We draft partnership terms that keep the business moving.
Comprehensive Formation Services
We handle formations for Solopreneurs, Startups, and Investment Groups.
1. Limited Liability Companies (LLC)
The most flexible option for most businesses. We draft custom Company Agreements that define management duties and profit distributions.
- Series LLCs: A powerful Texas tool for real estate investors, allowing you to hold separate properties in separate “cells” with a single filing fee.
2. Corporations (C-Corp & S-Corp)
If you plan to raise Venture Capital (VC), you likely need a Delaware C-Corp. We handle the complex setup, including:
- Authorized Shares: Determining how much stock to issue.
- Founder’s Stock: Vesting schedules to protect the company if a founder leaves.
- Bylaws & Initial Resolutions: The formal rules of the boardroom.
3. Professional Entities (PLLC / PC)
Doctors, lawyers, architects, and CPAs have special requirements in Texas. We form Professional LLCs (PLLCs) that comply with state licensing boards.
4. Non-Profit Organizations (501c3)
We guide charitable organizations through state incorporation and the complex IRS application process for tax-exempt status.
5. Registered Agent Services
We can serve as your Registered Agent, ensuring that if your business is sued, the sheriff doesn’t show up at your front door or customer lobby to serve the papers.
What We Fight For (Your Outcomes)
Investment Readiness & Asset Protection.
- Corporate Veil Integrity: Structuring the business so your personal life is walled off from business liabilities.
- Scalability: Creating a structure that allows you to easily add new partners or sell equity later.
- Tax Efficiency: Working with your CPA to ensure the legal structure supports your tax strategy.
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How We Build Your Strategy
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1. The Consultation
We ask the hard questions: Do you plan to sell in 5 years? Are you raising money? Who is putting in the cash vs. the sweat equity?
2. The Design
We recommend the entity type and state of formation. We draft the internal governance documents tailored to your specific risks.
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3. The Launch
We file with the Secretary of State, obtain your EIN (Tax ID) from the IRS, and deliver your “Corporate Binder” with all your initial resolutions signed and ready.
Don't Build on Sand.
Your business deserves a professional legal foundation. Contact Saffold Law to start your company the right way.
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