Starting a business in Texas begins with a fundamental legal decision: choosing the right entity structure. This choice affects personal liability protection, tax obligations, operational flexibility, and access to capital. A sole proprietorship exposes personal assets to business debts. A corporation creates formal governance requirements. An LLC offers flexibility but requires proper documentation. Getting this decision wrong costs money to fix and may leave owners vulnerable to risks they assumed were covered.
Texas requires filing entities like LLCs, corporations, and limited partnerships to register with the Secretary of State. The Certificate of Formation must include specific information about management structure, registered agents, and business purpose. Operating agreements and bylaws govern internal operations but receive no state review. These documents determine what happens when partners disagree, when owners want to exit, or when the business needs additional capital.
What Business Formation Attorneys Handle
Entity Selection and Structuring
Attorneys evaluate business goals, ownership arrangements, liability concerns, and tax implications to recommend appropriate entity types. Options include sole proprietorships, general partnerships, limited partnerships, limited liability companies, professional limited liability companies, series LLCs, C corporations, S corporations, and professional associations. Each structure carries different requirements for formation, governance, and ongoing compliance.
Formation Documents and Filings
Formation requires preparing and filing certificates with the Texas Secretary of State, drafting operating agreements or bylaws, establishing ownership records, and obtaining necessary federal and state tax identification numbers. Attorneys ensure documents comply with Texas Business Organizations Code requirements and address client-specific concerns about management authority, profit distribution, and ownership transfers.
Governance and Compliance Systems
Ongoing compliance includes maintaining registered agents, filing annual reports where required, documenting major business decisions, and preserving liability protection through proper corporate formalities. Attorneys establish systems for record-keeping and advise on transactions that require formal authorization.
How to Choose a Business Formation Attorney
Entity Structure Knowledge: The attorney should explain tradeoffs between different structures, not just file whatever the client initially requests. Ask how they help clients evaluate options.
Industry Experience: Certain industries face specific formation requirements. Healthcare practices need professional entities. Real estate investors often benefit from series LLCs. Technology startups planning to raise capital may need Delaware corporations despite Texas operations.
Tax Coordination: Entity selection has significant tax consequences. Attorneys should either have tax expertise or coordinate with CPAs during the planning process.
Document Quality: Ask for sample operating agreement provisions. Generic templates downloaded from the internet differ substantially from custom-drafted documents that address specific client situations.
Ongoing Relationship: Formation is the beginning, not the end. Consider whether the firm can handle future needs as the business grows.
Texas Business Formation Law Firms
Copp Law Firm
Location: Dallas, Texas
Website: https://www.copplaw.com
Phone: 214-206-1999
Copp Law Firm focuses on LLC formation for Texas businesses. The firm offers flat-fee LLC formation services with state filing fees additional.
Practice Focus:
- LLC and Series LLC formation
- PLLC formation for licensed professionals
- Operating agreement drafting
- S-Corp and C-Corp tax elections
Hendershot Cowart P.C.
Location: Houston, Texas
Website: https://www.hchlawyers.com
Phone: 713-528-8793
Hendershot Cowart handles business formation matters for Texas businesses. The firm handles entity selection, formation filings, and governance documents across all business structure types. Their team addresses industry-specific compliance requirements, particularly for healthcare practices subject to Stark Law, Anti-Kickback Statute, and corporate practice of medicine prohibitions.
Practice Focus:
- LLC, corporation, and partnership formation
- Healthcare practice structuring
- Series LLC establishment
- Operating agreements and bylaws
- Registered agent services
Law Office of Nathaniel Gilbert, PLLC
Location: San Antonio, Texas
Website: https://longilbert.com
Phone: 726-999-0087
Nathaniel Gilbert operates a statewide practice from San Antonio, serving clients in Houston, Dallas, Austin, Amarillo, and Fort Worth. The firm offers flat-fee LLC formation with free 15-minute consultations. Gilbert specializes in Series LLCs for clients managing multiple investments or distinct business lines under a single umbrella entity. The firm handles Certificate of Formation filings, custom operating agreements, and buy-sell agreements.
Practice Focus:
- Standard LLC formation
- Series LLC structuring
- PLLC for licensed professionals
- Buy-sell agreement drafting
- Real estate entity planning
Costs and Fees
Texas charges $308.10 to file a Certificate of Formation for LLCs and $303 for corporations. Attorney fees for straightforward formations typically range from $400 to $1,500 on a flat-fee basis. Complex structures involving multiple entities, detailed operating agreements addressing specific ownership scenarios, or industry-specific compliance requirements cost $2,500 to $7,500 or more depending on complexity. Annual registered agent services run $100 to $300 when provided by the forming attorney.
Frequently Asked Questions
Do I need an attorney to form an LLC in Texas?
Texas does not require attorney involvement. The Secretary of State provides online filing through SOSDirect. However, the Certificate of Formation creates only the entity shell. The operating agreement governing internal operations, liability protection provisions, and ownership transfer rules requires careful drafting. Errors in these documents create problems that cost more to fix than proper formation costs initially.
How long does business formation take in Texas?
The Secretary of State typically processes filings within 3 to 5 business days for online submissions. Rush processing is available for additional fees. Attorney preparation of formation documents takes 1 to 3 days for standard entities, longer for complex structures requiring custom operating agreement provisions.
What is the difference between an LLC and a corporation?
LLCs offer management flexibility and pass-through taxation while providing liability protection. Corporations have formal governance requirements including boards of directors and shareholder meetings. C corporations face double taxation on distributed profits. S corporations provide pass-through taxation but limit ownership to 100 shareholders who must be U.S. citizens or residents.
Can I change my business structure later?
Yes, but restructuring involves legal and tax consequences. Converting from one entity type to another may trigger tax recognition events. Some conversions require dissolving the original entity and forming a new one. Proper initial structure selection avoids these complications.
Last Updated: January 2026
Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Fee estimates are approximations only and actual costs may vary significantly. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.