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Understanding shareholder meetings

Shareholders in a corporation are required by the law to hold a general meeting at least every 15 months but is generally done every year. Usually called an AGM or “Annual General Meeting”, it is the time of the year when corporations’ key persons see each other to discuss important business matters or make critical decisions.

Below is the usual agenda of AGM:

  • Presentation and approval of the previous AGM minutes
  • Presentation and approval of the company’s financial statements
  • Shareholders’ approval of actions that are decided by the board of directors
  • Approval of dividend payments
  • Exercise shareholders’ rights to elect new members of the board or vote for or against a particular issue of the company

Aside from the above-mentioned agenda, an AGM is also a way for shareholders to express their opinions with regards the growth or future status of the business. As an AGM is critical to the success of every business, working with a skilled business attorney who would help you facilitate and oversee your company’s AGM is worth considering. Find out how an Austin attorney at Adam Pugh may work for you today by calling (737) 261-0602.


Taxes required to start a business in Texas

As in other states, individuals who are considering starting their own business in Texas should know they will need to pay several taxes in order to legally operate. Determining business taxes is an important facet of creating a business because individuals must find out if their finances can settle the taxes required of them. Below are the taxes required to run a business in Texas:

  • Federal taxes that are required by the IRS
  • State taxes that are required by the Texas Comptroller of Public Accounts for the benefit of the state
  • Local taxes or business inventory taxes required by the local County Appraisal District where the business is operating
  • Unemployment taxes required by the Texas Workforce Commission

Figuring out taxes while running a business is often difficult due to the legal technicalities involved. However, if you are planning to start a business, working with an attorney will give you an edge in your chosen venture. Find out how the attorneys at Adam Pugh in Austin may be able to work for you today by calling (737) 261-0602.


Understanding the pros and cons of an “S Corporation”

When setting up a new business, individuals should know the Internal Revenue Service (IRS) recognizes two kinds of business structures, which determine how the business will be taxed by the government. An “S Corporation” is one of the two types of business structures an entrepreneur may choose.

Business owners who decide to make their venture an “S Corporation” are not mandated by the IRS to settle corporate income taxes based on their profit. Usually, individuals who decide to run small businesses are the benefactors of S Corporations because they are taxed only once, but they also receive the legal advantages enjoyed by other types of businesses. Individuals should know they need to file Form 2553 with the IRS, requesting to become an S Corporation, and they will need to comply with the standards set to acquire the status.

If you are required to make a decision for your business, seeking the opinion of a skilled business attorney is critical to safeguarding your investments. Get in touch with an attorney at Adam Pugh in Austin today by calling (737) 261-0602 to find out how we may work on your behalf.


What are the advantages of forming an LLP type of business?

A type of venture people could form in Austin is an LLP or Limited Liability Partnership as it has more advantages compared to Limited Liability Company (LLC) type of business.

In an LLP, business owners have a possibility of reducing any risks related to their venture as this type of business allows them to have many partners that could share its liabilities. Many entrepreneurs consider this a big advantage because any kinds of business have varying levels of risks along the way. Another advantage of an LLP that is worth considering is it gives every partner the right to make a decision on how they are going to participate in the business. Business partners who have other ventures may benefit from this. Then lastly, LLP-type-businesses are not taxed by the IRS because every partner of the business is required to file taxes by themselves individually. While there are many benefits in considering an LLP type of business, it also has some disadvantages for other would-be entrepreneurs.

If you are considering starting your own business, seeking help from an attorney is a viable option for you to understand the pros and cons of business types and help you decide what better suits you. Find out how a lawyer at Adam Pugh in Austin may help you today by calling (737) 261-0602.

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