Business Start Up Law for Manager Managed LLC FormationBy James Blake on
Forming an LLC in Texas as a member managed or manager managed LLC is a fast way to get your business start up in motion. Yet starting an LLC in Texas without advice from a business start up lawyer or LLC attorney can be hazardous because there’s more to LLC formation and LLC registration than meets the eye. This is especially true for a manager managed LLC, where federal securities law can be involved, so get advice from a business start up lawyer or LLC attorney to make the right decision for forming an LLC in Texas as a member managed or manager managed LLC.
Member Managed vs Manager Managed LLC
LLC registration and LLC formation in Texas requires a business start up to choose between forming an LLC that is a member managed or manager managed LLC. A member managed LLC is a basic business formation where the business start up members control the LLC. But if you’re starting an LLC in Texas with passive investors who don’t control the business start up, a manager managed LLC can be a good business formation. Depending on your business start up, there may be other reasons to choose a manager managed LLC, so talk with a business start up lawyer or LLC attorney to get reliable advice.
Manager Managed LLC Formation in Texas
When you’re starting an LLC in Texas with a manager managed LLC formation, you should seek professional advice from a business start up lawyer or LLC attorney to make sure you comply with federal securities laws, because a member managed LLC formation is often interpreted as creating “securities.” As long as your business start up fits within certain safe harbor provisions, your member managed LLC formation will not require special state and federal securities filings, but the advice of a business start up lawyer or LLC attorney is important to protect your business start up from big mistakes.
LLC registration and LLC formation in Texas can be a fast-track for your business start up, but starting an LLC also requires important business law considerations and advice from a business start up lawyer or LLC attorney. Our Texas business law firm regularly advises business start up and LLC formation. Contact our Texas business law firm today.
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