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The entity you choose — and the documents behind it — determine who’s liable when something goes wrong, how your profits are taxed, who controls decisions, and how hard it will be to bring in a partner or sell someday. Get it right at the start, and your structure works quietly in the background for years. Get it wrong, and you’ll pay to fix it later, usually at the worst possible time.
Compass Legal, PLLC helps North Texas business owners form, document, and restructure their companies under the Texas Business Organizations Code (BOC). From our Carrollton office, we serve founders and established owners across Dallas, Denton, Collin, and Tarrant counties.
Choose based on four factors: liability protection, tax treatment, management structure, and ownership flexibility. There’s no single “best” entity — there’s only the best fit for how you’ll actually run and grow your business.
Texas recognizes a full menu of options: sole proprietorships, general partnerships, limited partnerships (LP), limited liability partnerships (LLP), LLCs (including series LLCs), for-profit corporations, professional entities (PLLC and PC) for licensed professionals, and nonprofits. We’ll walk you through the tradeoffs in plain English and recommend the structure that fits your goals.
Forming a Texas filing entity follows a defined sequence — and the filing itself is only the beginning:
We handle this entire sequence for you, and just as importantly, we make sure the documents reflect how you actually plan to run the business.
Because the Certificate of Formation creates your entity, but the company agreement governs it. The state filing is a few pages of basic facts. The company agreement answers the questions that actually decide disputes: Who owns what percentage? Who can sign contracts? How are profits distributed? What happens if an owner wants out, stops contributing, divorces, or dies? Without a written agreement, the BOC’s default rules fill the gaps — and those defaults rarely match what owners would have chosen. We’ve seen far too many partnerships fracture over questions a two-hour drafting conversation would have settled years earlier. If your company has more than one owner and no real company agreement, fixing that should be your next legal priority. Pair it with a buy-sell agreement and you’ve covered the most common ways co-ownership goes wrong. Learn more about the full set of contractual agreements your business should have in place.
Restructuring means changing your entity’s legal form, ownership, or governing documents to match where your business is going. The BOC gives Texas businesses powerful tools to do it without starting over:
Common triggers: a partner joining or leaving, outside investment, a second location or line of business, succession planning, or discovering that the structure you set up years ago no longer fits. If a dispute among owners is what’s driving the change, our mediation services can help you resolve it without burning the company down in the process.
We regularly clean up formations that owners did themselves or bought from an online service. The most common problems:
The filing fee is the cheapest part of forming a business. The value is in the judgment behind it.
Whether you’re forming your first LLC or restructuring a company you’ve run for a decade, we’ll lead you in the right direction. And once you’re formed, many clients keep us on through general counsel support so the structure keeps pace as the business grows.
The Texas Secretary of State charges a $300 filing fee for an LLC or for-profit corporation’s Certificate of Formation. That fee is waived for qualified veteran-owned businesses — a waiver made permanent effective January 1, 2026. Attorney fees are separate and depend on complexity, particularly the company agreement, which is where the real value of professional formation lies. We’ll quote the full scope in a consultation.
Yes. Texas law requires every filing entity to maintain a registered agent with a Texas address to receive service of process and official notices. You can serve as your own agent if you have a Texas address and are available during business hours, but many owners prefer a third party for privacy and reliability. We help clients set this up correctly during formation.
Most small businesses owe no franchise tax because of the no-tax-due threshold —$2,650,000 in annualized total revenue for 2026 reports, up from $2,470,000. But owing nothing doesn’t mean filing nothing: every taxable entity must still submit a Public Information Report or Ownership Information Report by May 15 each year to stay in good standing.
A PLLC (professional limited liability company) is the version of an LLC that Texas requires for licensed professionals — such as physicians, attorneys, and CPAs — who provide professional services through an entity. It offers similar liability protection for business obligations, though it doesn’t shield a professional from liability for their own malpractice. If you hold a professional license, entity choice rules differ, and we can confirm which structure your profession requires.
Yes. The Texas Business Organizations Code allows conversions, which change your entity’s form — for example, corporation to LLC — while preserving its legal existence, contracts, EIN history, and property. Mergers and amendments to the Certificate of Formation offer additional restructuring paths. These tools mean an early structural choice isn’t permanent, though converting cleanly still takes careful planning, especially around tax consequences.
It can create a legal entity, but that’s all it does. Online services don’t evaluate whether you chose the right structure, don’t draft a company agreement tailored to your ownership and plans, and don’t flag profession-specific requirements like PLLCs. Most of the formation problems we fix started with a DIY or online filing that was technically valid but strategically wrong.
Angela is an outstanding family law attorney. Not only does she really know the law inside out, she is compassionate and gets to know her clients intimately, to better be able to serve them. She is ethical and works diligently to achieve the best possible outcome for those she represents. I am grateful for Angela’s professionalism, swift responses, attention to details and being proactive in always communicating next steps in a clear and concise manner. She made a very stressful divorce process less daunting. She was collaborative, efficient and kinds throughout the process and her communication was stellar. Angela was a great recourse on questions pertaining not only to the divorce at hand, but the process as a whole. She took the time to explain the logistics of navigating the judicial system, in detail. This is a rare gift that eliminates stress, money waste and guess work. Angela did a fabulous job of understanding what my own priorities were and helping me find the best way to patiently work through the process to achieve those goals. I feel that with Angela as my attorney, I received excellent legal representation. Her professionalism is remarkable, along with her knowledge and execution of the law. This was an extremely sensitive and emotional time in my life and Angela handled this case from beginning to end with grace and professionalism in every aspect. I feel that when people are faced with the fear of the unknown and are then given a sense of peace throughout this unfamiliar legal process, then they have found the correct Legal Representation. I definitely found just that in Angela and for that I’m grateful. I’m moving forward with my new life on a very positive note, knowing that I was represented by the most professional and well-rounded attorney that anyone could ever ask for. You can take comfort in knowing that if you retain Angela for your legal needs, you have hired THE VERY BEST !! Angela projects a calm confidence in every situation and that’s clearly a result of the dedication, preparation, and experience that she put into representing her clients. She guided me through an extremely difficult and foreign process. She did not flinch when it was time to give me tough feedback and her advice and support has been right on the money. I feel blessed to be working with Angela as she had my back from day one. I would recommend Angela to people ready to be honest to themselves and to do what’s best for their families. Conscientious, smart, excellent trial lawyer. Ethical, honest and knowledgeable, Outstanding. Great advice. Informative, patient and transparent and keep me up to date on the process. Makes the process as stress-free and straightforward as possible. Thoughtful and detailed
Angela represented me in a very difficult and uncommon family case involving complex out-of-state issues. It was an emotionally challenging situation with many moving parts, and I truly appreciate the professionalism, dedication, and steady guidance she brought to the process. My case was not typical, and there were layers of complexity that I imagine are not encountered every day, yet she handled it with experience, composure, and persistence. I know that both Angela and Ashtyn worked extremely hard behind the scenes on my behalf. Their effort, preparation, and attention to detail did not go unnoticed, especially given how stressful and high-stakes the situation was for me and my family. Navigating a case like this requires not only legal skill but also patience and resilience, and I am grateful for the work they put in throughout the process. I was ultimately able to achieve the outcome I had hoped for, which meant a great deal to me. Having strong representation during such a vulnerable time made an important difference. Ashtyn was also an invaluable part of the team. This case was very emotionally taxing, and her support helped keep communication calm, organized, and manageable when things felt overwhelming. She was responsive, reassuring, and helped maintain a sense of stability during a very uncertain period. While no legal process is ever easy, I appreciate the professionalism, time, and effort both Angela and Ashtyn invested in my case. I am thankful for their work and the role they played in helping me move forward.
I highly recommend Angela for legal services. I’ve consulted with her on both family legal concerns and business-related matters, and each experience has strengthened my confidence in her professionalism and legal expertise. What stands out most about Angela is her honest, straightforward communication and practical approach. She takes the time to walk through realistic scenarios and potential outcomes so you fully understand your options before moving forward. That level of transparency earned my trust and appreciation for how she approaches her work. Angela strongly advocates for her clients’ best interests. She provides thoughtful, well-informed guidance and is responsive when questions arise, always following up with clear explanations and practical recommendations. If you’re looking for a knowledgeable, professional, and trustworthy attorney who communicates clearly and focuses on practical solutions, I confidently recommend Angela.
Angela at Compass Legal is not only an excellent attorney but also someone who genuinely cares about the people she serves. She listened carefully, and answered all my questions patiently. Her integrity and dedication truly stand out. I’m so grateful for her guidance and would trust her again without hesitation.
Magali has my full trust, and I wouldn’t want anyone else on my team. Her dedication and attention to detail in my case have gone far beyond my expectations. She took the time to walk me through every step of the process and has always been straightforward and honest.
I’ve had the privilege of seeing her in the courtroom, and all I can say is I’m grateful she’s on my side. She helped me set court ordered boundaries that keep my family safe and healthy, and she truly cares about the best interests of my daughter.
If you are thinking whether Compass Legal is the right fit for you, all I can say is they gave me peace of mind during one of the most difficult times in my life.
Angela is an amazing lawyer and has helped me with many legal matters. I trust her judgment and advice. She is easy to talk to and I always feel like she has my best interest at heart. I would recommend her to anyone that needs a great lawyer!!
Angela has proven to be very dedicated to her craft. She is knowledgeable and relates well with those she represents. I’d highly recommend her for her honesty and skillful representation.
Schedule a confidential consultation with Compass Legal, PLLC to discuss your family or business law matter and receive clear, strategic guidance tailored to your goals, challenges, and next steps.
(972) 292-8151