I form and maintain many entities each year for my clients. Since I am located in Texas, I form mostly Texas entities. But I am frequently asked to form entities elsewhere -- mainly Nevada and Delaware. I always assumed that the filing fees and simlar charges made by Nevada and Delaware were less than those in Texas (not counting the cost of maintaining a registered office if you weren't actually located there). But the other day, I was informed that Nevada was going to start strictly enforcing its charges for a Business License. So, I asked one of my paralegals to investigate the various charges of each of these states. You may find the results as interesting as I did. Read on . . .Continue Reading...
The Texas Business Organizations Code became effective January 1, 2006 for all entities formed after that date. It becomes effective January 1, 2010, for ALL Texas entities.
If your entity was formed before January 1, 2006, you can “opt” into the new law before 2010 by filing a form with the Texas Secretary of State. Some reasons for your entity to opt in are:
- Favorable reinstatement provisions for suspended entities
- Cross-entity merger issues
- Amending governing documents and desire to use current terms
- Conversion or merger changes
- Identification of true entity type of foreign entity qualified as foreign LLC
Consult a knowledgeable corporate attorney on why or how your entity can comply with the new Texas statutes.
Just as you may find yourself without a car by ignoring regular maintenance, you may find yourself without liability protection and expected business and tax advantages if you ignore your entity’s maintenance. If you have an ownership or management interest in an entity, it may be time to perform an Entity Maintenance Checkup.Continue Reading...