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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.

Things to consider when starting your own retail business

Retail is one of the most common business models embraced by aspiring entrepreneurs due to the variety of options available regarding how they could operate. Individuals who are entering retail as an entrepreneurial venture should consider the following factors to determine if retail is the type of business that suits them.

  • The ability to lead: Starting entrepreneurs are expected to be the captain of their own ship and be accountable in all of their decisions.
  • The ability to multitask and work by yourself: Starting entrepreneurs should know they have to complete multiple tasks simultaneously to learn the process by themselves and to lower overhead costs.
  • The ability to quickly respond to situations: Retail business, like any kind of business, is unpredictable and business owners should be proactive in such situations.
  • The ability to make sacrifices: Business owners should understand that there will be a point in their business career when they will experience unsteady cash flow.
  • The ability to interact with all kinds of customers: Prospective retailers should understand that they will deal with different types of customers and they should be prepared to handle that.

Individuals may consider running a retailing business if they are comfortable with the above factors that are expected from a retailer. However, if you want to know more about how to start your own retailing business in Austin, an attorney at Adam Pugh can help you. Find out how we could help you enter the exciting world of business today by calling (737) 261-0602.

Understanding “Breach of Contract”

Oftentimes, businesses are unpredictable in nature. Contracts are created between two or more business parties so they have the security that their business will not be compromised if an unfortunate situation occurs. Because businesses have secured a contract, they are allowed to file a lawsuit when a “breach” occurs.

In a signed contract, all parties have agreed to fulfill all the listed details that are critical to the business. A person who signs a contract and fails to follow one or more of the agreed obligations is actually committing a breach and therefore compromising other parties who have also signed the contract. As disputes often take place in a breach of contract, affected parties may seek damage claims, ask for a resolution, and potentially seek the recovery of their losses after the breach. As businesses are financial in nature, affected parties are given payments to help them recover from their losses.

Unfortunately, breach of contract is a complicated legal topic that is critical to the success of any business venture. If you are considering starting your own business in Austin, an experienced lawyer at Adam Pugh may be able to work for you. Call our office today at (737) 261-0602 to find out how we may be able to work on your behalf.

Varieties of business models

Before embarking on a new business venture, it is important for entrepreneurs to structure their business according to the specific goals of the company. The business model that an entrepreneur chooses will define several key components of the company. There are four major business models to choose from based on the type of company being created.  

  • A manufacturing business creates products that are sold to consumers.
  • Distributing is the type of business that buys products from a manufacturer and sells them directly to either consumers or other companies
  • A retailer sells products that are bought from distributors or manufacturers.
  • A franchise can follow any of the previous three models, depending on the company adopted

These four basic business models are flexible and can be integrated with one another. Running a business, though exciting, can also be a daunting task. This is why the attorneys at Adam Pugh are trained to help with the logistics. Call (737) 261-0602 to discuss your situation today.

Things to consider when operating a sole proprietorship

Due to the simplicity of the structure, many people opt to run a sole proprietorship when they go into business. However, for an individual to legally operate a business in Austin, he or she should consider the following things:

  • Possibility of getting a business license
  • Business registration required by the state or the municipality where the company will operate
  • Financial capacity of the entrepreneur to run a business
  • Possibility of transferring business ownership
  • Duration of business existence

People who decide to run their own business should seriously deal with the aforementioned things because the type of business you choose to pursue could make or break the success of your chosen venture. Though individuals can browse the Internet to educate themselves on how to become a sole proprietor, seeking advice from skilled business attorneys is essential because they are knowledgeable about the legal aspects of setting up a business. Speak with the attorneys at Adam Pugh today by calling (737) 261-0602 to learn more about your options.

Hiring in Texas increases in July as economy improves

A recent report revealed that more workers were hired in Texas last month as a result of continuous economic improvement in the state, an article of Dallas Business Journal reported on August 19.

The increase in workforce hiring was attributed to the improved economic improvement felt in Texas in the second quarter, veteran economist Keith Phillips said. A report of the Federal Reserve Bank of Dallas revealed that there were approximately 21,700 workers hired in July compared to the 16,700 recorded hires in June. Phillips also said that many employers are getting more active in advertising jobs as they open up job opportunities. The workforce in Texas this year is estimated to reach 96,200.

Starting your own business can be exciting as the economy continue to improve. If you want to know how you can run your business smoothly in Texas, an attorney at Adam Pugh may be able to help you. Call our office today at (737) 261-0602 to find out how we may work on your behalf.

Ways to fund a small business

No matter how promising your business idea is, you will need to figure out where to find the funding to turn your idea into a reality and start making money from it. While there are individuals who have enough money saved or decide to use their assets to start a small business, many business owners do not consider this approach because it will risk their personal financial health. Below are some other ways individuals could receive funds for their business.

  • Consider getting a commercial loan offered by a private financial institution. There are banks and credit card companies that offer financial assistance for small businesses.
  • Individuals may fund their business by looking for partners who are willing to invest in their business in exchange for a business ownership share. This option is worth considering if you have a poor credit history and cannot obtain a loan.
  • Individuals may seek the help of the Small Business Administration (SBA) or another federal or state agency that offers financial support to small business owners.

If you are looking for advice on how to finance your small business, discuss your situation with an attorney at Adam Pugh in Austin. Call our office today at (737) 261-0602 to find out how we may help you start your small business.

Texas faring better as country’s economy slows

An economist recently observed that Texas’ economy performed slightly better than other states in the second quarter, an article of WBAP reported on August 1.

According to Southern Methodist University economist Dr. Bernard Weinstein, Texas did “fairly well” even though the nationwide economy barely reached a 2 percent increase in the second quarter. Though consumer spending is up, which is an important factor in a healthy economy, Weinstein noted that fewer businesses are making new investments. Weinstein explained that job creation is hurt when businesses do not make new investments in plants and equipment. Last year, the Texas economy created 175,000 new jobs, down from the 300,000 created two years ago. 

If you plan to contribute to the U.S. economy by running your own business, the Texas business lawyers at Adam Pugh may be able to work for you. Find out how we can provide you with fresh ideas on how to operate legally by calling (737) 261-0602.

What to write in a business plan

Potential entrepreneurs are often reluctant to write a business plan for their chosen venture because they assume it is unnecessary. However, a comprehensive plan can provide you with a full understanding of what you want to do and where your business will go in the future. Below are the topics that should be included in a business plan:

  • Executive Summary
  • Set-up and Structure of Business
  • Financial Plan Strategy
  • Development and Regulatory process outline
  • Marketing Plan
  • Biographies
  • Launch and Delivery Plan

The business plan serves as a map for entrepreneurs to help them determine each aspect of their business. While there is no infallible way to succeed in running a business, having a comprehensive business plan puts a potential entrepreneur one step ahead of competitors. If you are trying to start your own business in Austin, an attorney at Adam Pugh may be able to work for you. Call our office today at (737) 261-0602 to find out how we can push you ahead of your competitors.

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