In this episode, I talk with Liz Garcia of Courageous Feats, LLC about forming her Texas LLC.

While the mechanics of forming an LLC in Texas are simple enough that many business owners feel comfortable DIY-ing these filings, the effects of choosing a business entity impact your business model from top to bottom. It’s an important decision.

Together, Liz and I talk through some of the key considerations for a solopreneur deciding whether to invest in an LLC instead of operating as a sole proprietorship.

Key considerations:

-What are you protecting?Do you have significant personal assets that could be threatened by a judgment against your business? Texas Property Code Title 5, Chapters 41 and 42 explain what kinds of real property and personal property may be exempt from collection by judgment creditors in certain circumstances:

http://www.statutes.legis.state.tx.us/Docs/PR/htm/PR.41.htmhttp://www.statutes.legis.state.tx.us/Docs/PR/htm/PR.42.htm

-What risks is your business exposed to?Are you controlling a physical space where you are responsible for the safety of your guests? Are you entering high-dollar contracts on behalf of your business? These are some of the kinds of business liabilities that can be separated from your personal liability by an LLC or other corporate form.

The Texas Secretary of State’s business filings website, SOSDirect, makes the initial filing process to incorporate a Texas LLC very simple.

http://www.sos.state.tx.us/corp/sosda/index.shtml

The IRS website for small business owners also makes it easy to apply for your EIN:

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

You can find Liz and Courageous Feats, LLC here:

https://www.linkedin.com/in/lizgarcia12https://www.facebook.com/courageousfeats

Thanks for listening!