Seven Reasons Why Texas for Your LLC or Corporation in 2016 and Beyond

Earlier in 2016, a document leaked called the “Panama Papers” surfacing in the Wall Street Journal introduced the world to offshore corporations based out of Panama, as referenced as the “last tax shelter in the world”, and their alleged illegal practices of shielding and hiding finances from the IRS.

While the topic of tax shelters will no doubt be an ongoing red hot topic, we as organizers and incorporators of Limited Liability Companies and corporations in states such as Nevada, Wyoming, Delaware, Florida, Montana, and Texas are in no way advocating illegal activity, fraud, tax evasion, or money laundering, we are simply educating you the reader as to legal avenues for safer smarter, better business tax strategies that have been and are legally available to you.

See our video with longtime Nevada and Wyoming Limited Liability Company and Corporation advocate and business and compliance attorney R. James Eckley on why you should consider this as a legitimate business practice.

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Seven Reasons Why Texas for Your LLC or Corporation in 2016 and Beyond

1. State Taxes:
   There are no state taxes in Texas for LLC’s nor are there any annual reports. The state generates it’s revenue based on gross receipts to which you’d pay 1% on gross income above $1,000,000.
2. Member/ Manager Listing in Public Records:
   Only the managers or the members need to be listed in public records.
3. Business Environment:
   Much like Montana, the state of Texas continues to rank as one of the very top states in the country for businesses.
4. Texas Multi-Member LLC’s:
   The state of Texas stipulates that a charging order is the sole remedy for creditors of multiple member LLC’s.
5. Texas Asset Protection Laws:
   Texas is a “Sole Remedy” State as previously referenced wherein a charging order is the only recourse eligible to a creditor.
6. Assets Protection of the Texas LLC Against the Personal Creditors of the Members:
   A creditor cannot take any membership in an LLC nor vote in place of a member, and instead only a gain a charging order in court.
7. Creditor Distribution Requirements in the Cases of Successful Charging Order Protection Against LLC’s:
   Only in the cases of voluntary and voluntary only agreed upon in writing wherein the agreement does not conflict with the operating agreement can creditor distributions be made in Texas.