TEXAS BUSINESS ORGANIZATIONS CODE

TITLE 3. LIMITED LIABILITY COMPANIES

CHAPTER 101. LIMITED LIABILITY COMPANIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 101.001. DEFINITIONS.

In this title:

     (1) “Company agreement” means any agreement, written or oral, of the members concerning the affairs or the conduct of the business of a limited liability company. A company agreement of a limited liability company having only one member is not unenforceable because only one person is a party to the company agreement.

LLCs

People starting out a new Texas business are often faced with the decision to form either a corporation or an LLC. While your ultimate choice of entity depends on many factors and should be talked over with a Texas business lawyer, here are a few situations where I almost always recommend an LLC:

Small Family Owned Business

An LLC is often a good choice when one or more family members plan to start a business, keep it in the family, and provide each business partner a set percentage of ownership from the beginning.