Differences in the Types of Texas Corporate EntitiesMarch 2, 2017
Texas law allows companies to organize under a variety of different corporate structures. The form of corporate structure and designation is important because it determines the leadership structure and the level of liability exposure of individual owners and partners. When a company is responsible for causing personal injuries, the type of corporate structure is an important factor that can determine the amount available for recovery to the inured parties. An experienced attorney will research the corporate structure and identify all potential sources of recovery by identify all potential parties with exposure to liability.
Some of the most common corporations are sole proprietorships, general and limited liability partnerships, s-corporations, c-corporations, and limited liability companies. In a sole proprietorship only one individual, typically the founder holds all responsibility for the company and its liabilities. In a partnership there are two or more people that are co-owners of a profitable business and all equally share liability. Limited liability companies are a safer form of company for owners as their personal assets are protected. C-corporations provide the best form of liability protection for shareholders. Money and assets belonging to the company may both be used to provide a recovery when the company is liable for another’s injury, however the individuals are protected in terms of their personal property.
Several resources are available to determine the type of legal entity of a company. One of the best resources is the Secretary of State website where businesses such as limited liability companies and corporations must be registered to operate. For insurance companies, you may check the state insurance regulators website, such as the Texas Department of Insurance which will identify the registered agent. You may also research county tax records for “DBAs” of entities to see the corporate name of the entity which registered the DBA.
Knowing the type of company responsible for your injuries is vital in seeking a proper recovery from the responsible parties. Understanding the structure, assets, and financial position of those that must be held responsible can contribute to determining the best strategy to obtain the most beneficial recovery. The attorneys with the Amaro Law Firm are experienced in obtaining justice against various forms of corporations. We are committed to obtaining you the compensation you deserve. If we cannot add value to your case, we will not take your case. We only win if you do. Contact us today for a free consultation.