Many Texas startup owners worry about how they will divide up the equity in their company. There are several factors to consider regarding this issue.
Strategic partnerships are formed when two business entities collaborate for a mutually beneficial purpose. A legal contract, which delineates the obligations and rights of each partner, defines the partnership. This contract creating and defining a strategic partnership must designate the responsibilities, obligations and contributions of each partner.
When a person is considering whether to sell or purchase a company, how the business's value is determined can be an important process. People often have a misunderstanding of how their business will be valued by prospective buyers.
There are several factors to consider when selecting a business structure in Texas such as the ease of transfer of ownership interests, continuity, management and tax liability. The most common structures are limited liability companies, corporations, general partnerships and sole proprietorships.