How will my business partner’s divorce affect the LLC we have together?

Question.How will my business partner’s divorce affect the LLC we have together? Answer. In Texas, a member’s interest in an LLC may be community property; however, a member’s rights under the Operating Agreement (e.g., right to participate in the management of the business) are not. Therefore, if one LLC member gets a divorce, they won’t… [Read More]

What is a Sole proprietorship?

Question: What is a Sole proprietorship? Answer. The most common and the simplest form of business is the sole proprietorship. In a sole proprietorship, a single individual engages in a business activity without necessity of formal organization. If the business is conducted under an assumed name (a name other than the surname of the individual),… [Read More]

What is an “S” Corporation?

Question: What is an “S” Corporation? Answer: An “S” corporation is not a matter of state corporate law but rather a federal tax election. A for-profit corporation elects to be taxed as an “S” corporation by filing an election with the Internal Revenue Service. For more details, you should contact competent tax counsel regarding the… [Read More]

What is a Texas Limited Partnership?

Question: What is a Texas Limited Partnership? Answer: A Texas limited partnership is a partnership formed by two or more persons and having one or more general partners and one or more limited partners. The limited partnership operates in accordance with a partnership agreement, written or oral, of the partners as to the affairs of… [Read More]

A collection agency is contacting me about my SBA loan. Is this real?

Question. A collection agency is contacting me about my SBA loan; is this legitimate? Answer. Once a loan has been referred to the U.S. Treasury due to non-payment or default of the loan, the Treasury utilizes several Private Collection Agencies to assist with debt collections. You should always verify the collection agency’s information by contacting… [Read More]