Retired Colonel Dana Jacobson, a seasoned business attorney with a rich background in both military and legal affairs, stands as a beacon of support for veterans, their families, and South Texas at large.

He’ll proudly serve you with his extensive military connections and a deep commitment to assisting servicemembers in their transitions. He offers invaluable guidance on various legal matters, including business formation, estate planning, and probate. Here’s what to know about business formation in Texas.

Choosing the Right Business Structure

One of the first and most crucial steps in forming a business in Texas is selecting the appropriate business structure. The choice of structure significantly impacts various aspects of the business, including liability, taxes, and management. In Texas, common business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

Dana Jacobson often advises clients to consider an LLC or corporation for their business due to the liability protection these structures offer. For service members, especially those frequently moving or stationed overseas, an LLC provides flexibility and ease of management. The LLC structure protects personal assets from business debts, making it a popular choice for military families looking to establish portable businesses.

Registering the Business Name

Once the business structure is chosen, the next step is registering the business name. In Texas, this process involves checking the availability of the desired name with the Texas Secretary of State. The name must be unique and not too similar to existing business names. This is crucial for establishing a distinct identity and avoiding legal conflicts.

Dana Jacobson emphasizes the importance of a thorough name search and registration. There have been instances where military families, eager to start their ventures, overlooked this step, leading to delays and legal issues. As a business lawyer, he assists in conducting comprehensive name searches and seeing to it that the chosen name aligns with Texas regulations.

Filing the Necessary Documents

After selecting the business structure and registering the name, the next step is filing the necessary documents with the Texas Secretary of State. For an LLC, this involves filing a Certificate of Formation, while for a corporation, the appropriate document is the Articles of Incorporation. These documents outline essential details about the business, including its name, address, and the names of its owners or directors.

Dana Jacobson highlights the importance of accuracy and attention to detail in this step. Errors or omissions can lead to delays or even rejection of the filing. As a business attorney, he makes sure that all documents are meticulously prepared and submitted, streamlining the process for his clients.

Creating an Operating Agreement or Bylaws

An often overlooked but vital step in the business formation process is creating an operating agreement (for LLCs) or bylaws (for corporations). These documents outline the internal management structure and operational procedures of the business. They define the roles and responsibilities of owners, managers, or directors and establish protocols for decision-making, profit distribution, and conflict resolution.

Dana Jacobson, drawing from his military background, stresses the importance of clear and concise agreements. In the military, structure and order are paramount. This same principle applies to business. By helping clients draft comprehensive operating agreements or bylaws, he helps businesses start off on the right foot.

Obtaining Necessary Licenses and Permits

In Texas, certain businesses require specific licenses and permits to operate legally. The requirements vary depending on the type of business and its location. Common licenses include general business licenses, professional licenses, and permits for specific activities like selling alcohol or operating a food establishment.

Dana Jacobson advises clients to thoroughly research and obtain all necessary licenses and permits before commencing operations. He recalls instances where businesses faced fines or shutdowns due to non-compliance. As a business attorney, he guides clients through the licensing process, helping them understand and fulfill all regulatory requirements.

Meeting Tax Obligations

Understanding and meeting tax obligations is a critical aspect of the business formation process. In Texas, businesses are subject to various state and federal taxes, including franchise taxes, sales taxes, and employment taxes. Failure to comply with tax requirements can result in penalties and legal issues.

Dana Jacobson emphasizes the importance of proper tax planning and compliance. For military families and veterans, tax considerations can be difficult, especially if they have income or assets in multiple states. As a business attorney, he helps clients with different tax issues, making sure they understand their obligations and take advantage of any available tax benefits.

Setting Up Financial Systems

Setting up robust financial systems is essential for the smooth operation and growth of any business. This includes opening a business bank account, setting up accounting and bookkeeping systems, and establishing financial controls and procedures.

The importance of financial organization and accountability can't be understated. Dana Jacobson advises clients to invest in reliable accounting software and, if necessary, seek the assistance of a professional accountant. By maintaining accurate financial records, businesses can make informed decisions, track their performance, and comply with tax and regulatory requirements.

Establishing a Business Presence

Creating a business presence is crucial for attracting customers and establishing credibility. This involves setting up a physical or virtual office, developing a professional website, and engaging in marketing and branding activities.

Dana Jacobson often suggests collaboration with marketing professionals to help clients build their business presence. For military families, he suggests leveraging their unique backgrounds and connections to create a compelling brand. As a business attorney, he can also advise on legal aspects of marketing, such as trademark protection and advertising regulations.

Securing Funding

Securing adequate funding is a common challenge for new businesses. In Texas, entrepreneurs have access to various funding sources, including personal savings, bank loans, venture capital, and government grants and loans. For veterans and military families, additional resources such as the Small Business Administration's (SBA) Veterans Advantage program can provide valuable support.

Dana Jacobson helps clients explore and secure funding options tailored to their needs. He guides them through the application process, preparing compelling business plans and financial projections. His goal is to help clients obtain the necessary capital to start and grow their businesses successfully.

Ongoing Compliance and Legal Support

The business formation process doesn't end once the business is up and running. Ongoing compliance with state and federal regulations is essential to avoid legal issues and guarantee long-term success. This includes filing annual reports, maintaining accurate records, and staying informed about changes in laws and regulations.

Dana Jacobson provides ongoing legal support to his clients, helping them stay above board in the ever-evolving legal system. He offers regular check-ins and updates to help enforce compliance and address any legal concerns that may arise. For military families, his support extends to managing their legal affairs while they're deployed or stationed overseas.

If Your Family Is Forming a Business, Call Today

Forming a business in Texas involves several critical steps, each requiring careful planning and attention to detail. For military families, the process can be particularly complicated, given their unique circumstances and needs. As a seasoned business attorney and retired colonel, Dana Jacobson offers invaluable guidance and support, helping clients manage the business formation process with confidence and ease.

By leveraging his military connections and legal experience, Dana Jacobson empowers veterans and military families to achieve their entrepreneurial goals. Whether it's setting up a portable business for a spouse, managing probate and estate planning, or renting out a home during deployment, his comprehensive legal services mean that clients are well-prepared for success.

For any Texan looking to start a business, having a knowledgeable and dedicated business attorney like Dana Jacobson at The Jacobson Law Firm, P.C. can make all the difference. His family’s firm is located in San Antonio, TX, and serves clients throughout San Antonio, Central Texas, and South Texas including Bexar County.