{"id":12034,"date":"2020-07-21T10:54:21","date_gmt":"2020-07-21T15:54:21","guid":{"rendered":"https:\/\/legaltalktexas.hammerle.com\/?p=12034"},"modified":"2026-09-16T13:36:19","modified_gmt":"2026-09-16T18:36:19","slug":"different-types-of-business-entities-guide","status":"publish","type":"post","link":"https:\/\/hammerle.com\/blog\/different-types-of-business-entities-guide\/","title":{"rendered":"What Are the Different Types of Business Entities in Texas?"},"content":{"rendered":"<p><span data-contrast=\"auto\">If you\u2019ve decided to start your own business, there are important first steps to take, including drawing up a precise business plan and securing the necessary capital to begin operations. Beyond that, it is extremely important to determine just what type of business entity and organizational structure you will use, and in Texas, you have <\/span><a href=\"https:\/\/hammerle.com\/practice-areas\/business-lawyers\/entity-formation\/\"><span data-contrast=\"none\">many types of business entities<\/span><\/a><span data-contrast=\"auto\"> from which to choose.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">We\u2019ll try to provide some preliminary guidance on choosing a business structure in Texas with this article, but it is intended for informational purposes only. Because your success may depend on choosing the entity form that is best for you, it is advisable that you seek the advice of an <\/span><a href=\"https:\/\/hammerle.com\/practice-areas\/business-lawyers\/\"><span data-contrast=\"none\">experienced business attorney<\/span><\/a><span data-contrast=\"auto\"> to assist you in making the right choice and guiding you through the business formation process.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2><span class=\"TextRun SCXW128286771 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW128286771 BCX0\" data-ccp-parastyle=\"heading 2\">Filing vs. Non-Filing Business Entities<\/span><\/span><span class=\"EOP Selected SCXW128286771 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:299,&quot;335559739&quot;:299}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">In Texas, businesses can be broken down into two basic categories: non-filing entities and filing entities. Before creating your business structure, you must decide if you want to form a filing entity or not.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Non-filing entities<\/span><span data-contrast=\"auto\"> are the most basic form of business structure available in the state. A non-filing business entity is formed without any formal action by the owner or the State of Texas. In other words, you just create your business, whatever it may be, and begin operations without filing any paperwork with the state government.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In contrast, <\/span><span data-contrast=\"auto\">filing entities<\/span><span data-contrast=\"auto\"> can only be formed by filing a <\/span><span data-contrast=\"auto\">certificate of formation with the Texas Secretary of State. <\/span><span data-contrast=\"auto\">Depending on the type of business entity, the formation process may also involve choosing a registered agent, paying a filing fee, and completing other filing requirements.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2>Non-Filing Business Entities<\/h2>\n<p><span class=\"TextRun SCXW35412347 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW35412347 BCX0\">In Texas, the two most common types of non-filing business entities are the <\/span><\/span><span class=\"TextRun SCXW35412347 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW35412347 BCX0\">sole proprietorship<\/span><\/span><span class=\"TextRun SCXW35412347 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW35412347 BCX0\"> and the <\/span><\/span><span class=\"TextRun SCXW35412347 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW35412347 BCX0\">general partnership<\/span><\/span><span class=\"TextRun SCXW35412347 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW35412347 BCX0\">.<\/span><\/span><span class=\"EOP Selected SCXW35412347 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Sole Proprietorship<\/h3>\n<p><span data-contrast=\"auto\">This is the most basic type of business structure, a one-person operation conducting business for a profit. Under Texas law, the sole legal requirement is that if you\u2019re conducting business under any name but your surname, you must file a \u201cDoing Business As\u201d (DBA) form, also known as an assumed name certificate, with the county clerk\u2019s office in the county where the business is located.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The great drawback of the sole proprietorship is that you\u2019re personally liable for debts and obligations of the business, and if you cannot pay your bills, creditors may go after your bank account and personal possessions to satisfy the debt. A sole proprietorship does not provide the same liability protection available through an LLC or corporation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>General Partnership<\/h3>\n<p><span data-contrast=\"auto\">This business structure is a slight step above the sole proprietorship and is essentially any association carried on by two or more people for a profit. Each person involved is a general partner, and they split profits and losses.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One problem, however, is that if your partner loses a lot of money at their end of the business, they might sue you for half those losses.<\/span><span data-contrast=\"auto\"> Partners may also face personal liability for certain business debts, obligations, and lawsuits. <\/span><span data-contrast=\"auto\">To avoid serious problems of this kind, it is highly advisable that you draw up precise rules specifying how your partnership will operate. Preferably, this should be done with the assistance of an experienced business attorney.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2>Filing Business Entities<\/h2>\n<p><span class=\"TextRun SCXW16229097 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16229097 BCX0\">Beyond the non-filing business entities, things get more complicated, especially considering the array of options from which you have to choose.<\/span> <\/span><span class=\"TextRun SCXW16229097 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16229097 BCX0\">Filing a business entity <\/span><span class=\"NormalTextRun SCXW16229097 BCX0\">generally creates<\/span><span class=\"NormalTextRun SCXW16229097 BCX0\"> a separate legal entity and may offer business owners greater liability protection.<\/span><\/span><span class=\"EOP Selected SCXW16229097 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Limited Partnership (LP)<\/h3>\n<p><span data-contrast=\"auto\">The LP is the next step above a general partnership and offers a number of advantages over the latter. You form a limited partnership by filing a certificate of formation with the Texas Secretary of State.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There are two types of partners in an LP, general partners, and limited partners. <\/span><span data-contrast=\"auto\">General partners<\/span><span data-contrast=\"auto\"> act much like the partners in a non-filing general partnership. They conduct business operations and are also responsible for the partnership\u2019s debts and obligations under Texas law.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">General partners can be either natural persons or legal entities. Consequently, businesses often use a limited liability company (LLC) or a corporation as a general partner of the LP, providing personal liability protection to the owners.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Limited partners<\/span><span data-contrast=\"auto\"> enjoy liability protection under Texas law, meaning they are legally protected from the debts and obligations of the partnership. However, they are not allowed to participate in the management or operation of the limited partnership. They are essentially \u201csilent partners\u201d investing money in the partnership but having no voice in how it is run. This arrangement is often used where an entrepreneur is looking for <\/span><span data-contrast=\"auto\">investors<\/span><span data-contrast=\"auto\"> to provide the capital needed to start a business.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Limited Liability Partnership (LLP)<\/h3>\n<p><span data-contrast=\"auto\">In this arrangement, all partners enjoy <\/span><span data-contrast=\"auto\">limited liability<\/span><span data-contrast=\"auto\">, and all are allowed to be involved in the management of the concern. Operating procedures can be spelled out in detail in the Limited Liability Partnership Agreement.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">LLPs are often preferred by professional service businesses such as accounting, financial service, and law firms. The basic reason for this preference is that partners in the LLP are not responsible for the negligence or malpractice claims made against other partners.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Corporations<\/h3>\n<p><span data-contrast=\"auto\">The corporation, also known as a <\/span><span data-contrast=\"auto\">C corporation or C-Corp<\/span><span data-contrast=\"auto\">, is probably the best-known business entity. Texas law views corporations as an entity separate from the owners, which means that when you organize a corporation you create a legal \u201cperson\u201d that has the capacity to own property, sue and be sued, and also has to pay taxes.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Under most circumstances, a board of directors\u2014chosen by the shareholders\u2014governs the major operations of the corporation, including the appointment of executive officers who will conduct the day-to-day business affairs.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As to taxation, C-Corps are required to pay taxes on their profits before distributing dividends to its <\/span><span data-contrast=\"auto\">shareholders<\/span><span data-contrast=\"auto\">. Additionally, shareholders pay income taxes on the dividends received, and this double taxation is one of the major drawbacks of a corporation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One way of reducing this tax burden is through the organization of an S-Corp, an entity subject to Subchapter S of the Federal Tax Code. Ownership of an S-Corp is limited to U.S. citizens, resident aliens, and certain trusts and estates. Business entities cannot own shares in an S-Corp. Ownership is also limited to 100 shareholders.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The great advantage of the S-Corp is its tax structure. An S-Corp has what is called \u201cpass-through\u201d tax status, meaning the S-Corp does not directly pay taxes on its income, which allows S-Corps to avoid the double taxation found in C-Corps. Rather, the S-Corp\u2019s shareholders report the flow-through of income and losses on their personal tax returns. <\/span><span data-contrast=\"auto\">S-Corps, however, are responsible for taxes on certain built-in gains and passive income at the entity level.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One other corporate structure is the Benefit Corporation or B-Corp. Traditionally, corporations try to maximize profits for their shareholders. B-Corps are also organized for profit, with an additional corporate purpose of supporting some cause that in some way benefits the general public.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To say it another way: for entrepreneurs who want to create a business that not only makes money but has a social issue at its core, the B-Corp may be the entity of choice for you.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">B-Corp laws became effective in Texas in September 2017. This corporate structure creates significant advantages for attracting and retaining employees who find the company\u2019s purpose a primary reason for working there, as well as consumers who identify with and like to purchase from socially conscious companies.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>The Limited Liability Company (LLC)<\/h3>\n<p><span data-contrast=\"auto\">The\u00a0 <\/span><a href=\"https:\/\/hammerle.com\/blog\/how-to-start-an-llc-in-texas\/\"><span data-contrast=\"none\">Limited Liability Company (LLC)<\/span><\/a><span data-contrast=\"auto\"> is another form of business entity in Texas, created by filing a certificate of formation with the Texas Secretary of State. So, what is an LLC and how does it work?<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">An LLC is owned by one or more members and can be either member-managed or manager-managed. In other words, the owners can either manage the LLC themselves or elect <\/span><span data-contrast=\"auto\">managers<\/span><span data-contrast=\"auto\"> who will operate like a board of directors of a corporation. And like a corporation, executive officers can be chosen by the members or the <\/span><span data-contrast=\"auto\">managers<\/span><span data-contrast=\"auto\">, depending on whether it is member-managed or manager-managed.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Unlike corporations, there is no requirement for either an initial meeting of the owners or managers or an annual meeting.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One of the great advantages of the LLC over a corporation is the pass-through tax benefit. LLC owners do not have to file a corporate tax return. Owners simply report their share of profits and losses on their tax returns, avoiding the double taxation paid by the traditional C-Corp\u2019s shareholders. <\/span><span data-contrast=\"auto\">An LLC may also provide flexibility in management, ownership and tax treatment, depending on how it is structured.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Nonprofit Entities<\/h3>\n<p><span data-contrast=\"auto\">A nonprofit organization is a business entity that has been granted tax-exempt status by the IRS because it furthers a social cause and provides a public benefit. nonprofit types. When people think of nonprofits, they usually have in mind a 501(c)(3) organization.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There are currently more than 1.5 million of these organizations in the U.S., and they are funded primarily through charitable donations and government grants. To obtain tax-exempt status, a nonprofit entity needs to comply with the IRS regulations and the regulations of the Texas Comptroller.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In addition to the 501(c)(3) organizations, other common nonprofits include 501(c)(4) civic leagues and social welfare organizations, social advocacy groups, private charitable foundations, and corporate giving programs.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2><span class=\"TextRun SCXW251749075 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW251749075 BCX0\" data-ccp-parastyle=\"heading 2\">Choosing the Right Business Entity in Texas<\/span><\/span><span class=\"EOP Selected SCXW251749075 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:299,&quot;335559739&quot;:299}\">\u00a0<\/span><\/h2>\n<p><span class=\"TextRun SCXW53838199 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW53838199 BCX0\">The right business structure depends on several factors, including the number of owners, management preferences, liability protection, tax treatment, plans for attracting investors and the type of business you plan to <\/span><span class=\"NormalTextRun SCXW53838199 BCX0\">operate<\/span><span class=\"NormalTextRun SCXW53838199 BCX0\">. <\/span><\/span><a class=\"Hyperlink SCXW53838199 BCX0\" href=\"https:\/\/hammerle.com\/blog\/8-questions-small-business-owners-should-ask-their-attorney\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW53838199 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW53838199 BCX0\" data-ccp-charstyle=\"Hyperlink\">Business owners<\/span><\/span><\/a><span class=\"TextRun SCXW53838199 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW53838199 BCX0\"> should also consider ongoing filing requirements, tax <\/span><span class=\"NormalTextRun SCXW53838199 BCX0\">returns<\/span><span class=\"NormalTextRun SCXW53838199 BCX0\"> and other obligations, including any applicable Texas franchise tax requirements.<\/span><\/span><span class=\"EOP Selected SCXW53838199 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3><span class=\"TextRun SCXW13799959 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW13799959 BCX0\" data-ccp-parastyle=\"heading 2\">Expert Business Law Assistance Is Available at Hammerle Morris Law Firm<\/span><\/span><span class=\"EOP Selected SCXW13799959 BCX0\" data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:120}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">At Hammerle Morris, we turn ideas into reality by providing the very best support and advocacy in the area of business law. Whether you\u2019re organizing a business for the first time or you\u2019re an experienced entrepreneur in need of a knowledgeable ally, we\u2019re here for you. <\/span><a href=\"https:\/\/hammerle.com\/contact\/#form\"><span data-contrast=\"none\">Contact us<\/span><\/a><span data-contrast=\"auto\"> today to schedule your initial consultation and let Hammerle Morris be your partner for success.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/hammerle.com\/our-team\/virginia-hammerle\/\"><i><span data-contrast=\"none\">Virginia Hammerle<\/span><\/i><\/a><i><span data-contrast=\"none\"> is a licensed Texas attorney whose practice includes <\/span><\/i><a href=\"https:\/\/hammerle.com\/practice-areas\/estate-planning\/\"><i><span data-contrast=\"none\">estate planning<\/span><\/i><\/a><i><span data-contrast=\"none\">, <\/span><\/i><a href=\"https:\/\/hammerle.com\/practice-areas\/probate\/\"><i><span data-contrast=\"none\">probate<\/span><\/i><\/a><i><span data-contrast=\"none\">, <\/span><\/i><a href=\"https:\/\/hammerle.com\/practice-areas\/guardianship\/\"><i><span data-contrast=\"none\">guardianship<\/span><\/i><\/a><i><span data-contrast=\"none\">, and <\/span><\/i><a href=\"https:\/\/hammerle.com\/practice-areas\/litigation-lawyers\/\"><i><span data-contrast=\"none\">litigation<\/span><\/i><\/a><i><span data-contrast=\"none\">.<\/span><\/i><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:315}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">This article is for informational purposes only and does not constitute legal advice.<\/span><\/i><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:315}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve decided to start your own business, there are important first steps to take, including drawing up a precise business plan and securing the necessary capital to begin operations. Beyond that, it is extremely important to determine just what type of business entity and organizational structure you will use, and in Texas, you have [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":12031,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[1074],"class_list":["post-12034","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-law","tag-business-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Different Types of Business Entities | Hammerle Morris Law Firm<\/title>\n<meta name=\"description\" content=\"Learn about the different types of business entities in Texas, including LLCs, partnerships, corporations, and more, before choosing a business structure.\" \/>\n<meta name=\"robots\" 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