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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54337
Experience:  32 years of experience practicing law and a businessman.
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Hello - I am purchasing a restaurant. Is it best to start an

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Hello - I am purchasing a restaurant. Is it best to start an LLC or S Corp?
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.

Good evening. There is really very little difference between an LLC or an S Corp...both are limited liability entities and both are flow-through tax entities...which are the two major things you are focused on. But, the LLC offers a bit more flexibility so I would recommend you go the LLC route because: i) anyone can be a member of an LLC while only individuals and certain trusts can be members of a S Corp; and ii) if you are going to have different levels of members and preferential allocations and/or distributions, it's more easily done in the LLC. So, botXXXXX XXXXXne...do the LLC.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 5 years ago.
Hello - since the restaurant is in Texas, do I need to incorporate in Texas?
Expert:  Richard replied 5 years ago.

You do not need to, but if you incorporate someone else, you will need to qualify the corporation to do business in Texas.

 

 

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Customer: replied 5 years ago.
How does that work?
Expert:  Richard replied 5 years ago.
You can do this online at the Texas Secretary of State website.....the application for Registration of Foreigin Entity can be completed and filed on line.
Customer: replied 5 years ago.
Would you agree with this approach? Does it make a difference?
Expert:  Richard replied 5 years ago.
I would recommend you form your entity in Texas.
Richard and 4 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Thank you!!
Customer: replied 5 years ago.
I have a company set up for my rental home. I can't use the same company for the restaurant,correct? I have a partner that has a company as well. Can we file a DBA?
Expert:  Richard replied 5 years ago.
The problem with putting the restaurant in the same company as your rental house is that they are cross-contaminated...meaning a problem with one is going to bring down the other. Yes, you can file a DBA.
Richard and 4 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Thanks!

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