Everything’s bigger in Texas, including the opportunities for business owners. Whether launching a food truck near Old Settlers Park or opening a tech startup off I-35, Round Rock is a vibrant place to bring your business idea to life. But getting your business off the ground means more than finding the ideal location. You need a plan, a structure, and someone who can help you avoid costly mistakes. That’s where a trusted Round Rock business formation lawyer from The Zimmerman Law Firm, P.C., comes in.

You’ve worked hard on your vision—it’s time to build it right from day one.

What Does a Business Formation Lawyer Do?

A business formation lawyer helps turn your idea into a legally recognized business. They walk you through each decision, from selecting the best structure to ensuring you meet Texas requirements.

Here are a few things a business formation attorney can help with:

  • Choosing a business structure—entities have different tax consequences and liability risks;
  • Filing with the Texas Secretary of State—includes your certificate of formation and related documents;
  • Drafting internal agreements—include operating agreements, bylaws, or partnership agreements;
  • Navigating licenses and permits—industry-specific or local licenses may be necessary; and
  • Applying for tax IDs—the business must have a federal Employer Identification Number (EIN) and possibly a Texas state tax ID.

Working with a lawyer from the beginning ensures your business complies with Texas laws, avoids common pitfalls, and is set up for long-term success.

Which Business Structure Is Right for You?

The structure you choose affects taxes, liability, and how your business operates. Some of the most common entities include:

  • Sole proprietorship. A sole proprietorship is the simplest entity since one person owns it and requires minimal paperwork. However, it offers no liability protection, and your personal assets could be at risk if the business faces debts or lawsuits.
  • Partnership. Used when two or more people start a business. General partnerships share liability equally, while limited partnerships offer liability protection to passive partners.
  • Limited liability company (LLC). LLCs are popular in Texas because they provide liability protection and pass-through tax treatment. The business doesn’t pay income taxes directly as profits and losses flow through to members’ tax returns.
  • Corporation. A corporation is a separate legal entity that offers strong liability protection. It also brings more complexity and corporate tax obligations.
  • Professional and nonprofit corporations. Professional corporations serve licensed professionals. Nonprofit corporations are for charitable or educational purposes and may be tax-exempt.

A business attorney can explain the pros and cons of each option and help you make the best decision for your goals.

Steps to Take When Setting Up a Business in Texas

To get your Round Rock business off the ground, you must:

  • Select a business name,
  • Choose a business structure,
  • File a certificate of formation with the Texas Secretary of State,
  • Appoint a registered agent,
  • Get an EIN for taxes and payroll,
  • Register for state taxes,
  • Secure necessary permits and licenses, and
  • Draft internal documents.

Each step is critical in building a strong and legally compliant business. A knowledgeable business lawyer can guide you through the process and handle the paperwork.

Necessary Documents for a New Business

Every business needs clear, written rules for how it will operate, especially when more than one person is involved. These internal documents prevent misunderstandings and reduce the risk of disputes between partners, members, or shareholders. The type of agreement you need depends on your business structure:

  • Operating agreement—for LLCs to outline each member’s ownership percentage, voting rights, profit distribution, and responsibilities;
  • Bylaws—helps corporations to explain the governing rules, including procedures for electing directors and holding meetings; and
  • Partnership agreement—used by general or limited partnerships to define how partners will share profits, make decisions, and resolve conflicts.

These documents should clearly state:

  • Who owns what percentage of the business;
  • How major decisions will be made and who gets a say;
  • What happens if an owner wants to leave, sell, or transfer their share; and
  • Methods for handling disputes, whether through mediation, arbitration, or court.

A business formation attorney can ensure your agreement is thorough, legally enforceable, and tailored to your business’s needs.

Mistakes to Avoid When Starting a Business in Texas

Even minor oversights can cause significant problems down the road. An experienced Round Rock business lawyer can help you avoid common mistakes like:

  • Choosing a structure that doesn’t protect your personal assets,
  • Skipping internal agreements between partners or members,
  • Forgetting required permits or licenses,
  • Failing to plan for ownership changes,
  • Using a business name that violates Texas naming rules, and
  • Not separating business and personal finances from the beginning.

Getting these details right from the start helps your business stay legally sound and ready to grow.

Why Work with The Zimmerman Law Firm?

At The Zimmerman Law Firm, we’ve been helping Texas entrepreneurs take confident legal steps for over 60 years. Starting a business involves personal risk, financial investment, and long-term vision. That’s why we provide tailored legal support from day one, helping you make informed decisions that protect your business and future.

Our firm is deeply rooted in Central Texas, and our attorneys have extensive experience across a wide range of industries, including healthcare, technology, retail, and service-based businesses. We go beyond the paperwork by building lasting relationships with our clients, offering continued support as your business grows and evolves. Choosing us means choosing legal partners who care about your goals and success today and for years to come.

Ready to Start Your Business? Let’s Talk

Your choices at the start will shape your business for years to come. Working with a Round Rock business formation lawyer at The Zimmerman Law Firm can help you get everything right the first time. We simplify the process so you can focus on building your vision.Call us today or contact us online to schedule your consultation.