Best type of business entity for a security guard and investigations company in state of TX for two owners/managers?

Asked over 1 year ago - San Antonio, TX

Should it be an LLC or straight corporation? If an LLC, the election to report earnings can be reported on Forms 1040, 1065, 1120 or 1120 S??

Attorney answers (3)

  1. Robert Neil Newton

    Pro

    Contributor Level 15

    2

    Lawyers agree

    Answered . More information is definitely needed. You should contact an attorney and schedule an appointment for further discussion.

    Best of luck to you. It's good to see people starting new businesses.

    The above statements are provided as general information and not intended as legal advice. Each matter has its own... more
  2. Orsen E. Paxton III

    Pro

    Contributor Level 17

    1

    Lawyer agrees

    Answered . You will not get anything other than a guess unless you consult with an experienced business lawyer and provide him your business plan. The entity currently preferred for small businesses is the limited liability company (LLC). But, do not create it yourself. You will not address all of the issues. You will end up with a Certificate of Formation but nothing more. Often, but not always, we advise that the LLC choose to be taxed as a corporation and then elect Subchapter S tax status. That avoids double taxation. You will need a good CPA too. The activities you list require licensing by the State.

    DISCLAIMER: This is not specific legal advice and does not establish an attorney/client relationship.
  3. Peter Joseph Lamont

    Pro

    Contributor Level 18

    2

    Lawyers agree

    1

    Answered . I would need more information before I could offer a firm opinion. In general, an llc works well for smaller entities.

    If you found this Answer helpful, please mark it as "Best Answer". Your feedback is greatly appreciated. Peter... more

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