FORMING LIMITED LIABILITY COMPANIES

Attorney in Dallas, Texas

Our Dallas business lawyers help business owners start and form limited liability companies to protect owners from personal liability.

LIMITED LIABILITY COMPANY FORMATION

What Is A Limited Liability Company?

A limited liability company (LLC) is a business structure allowed by state statute and created by filing a certificate of formation with the Texas Secretary of State.  Each state may use different regulations.  You should check with your state if you are interested in starting a limited liability company.  Advantages of a limited liability company include i) there is no restriction on the number of members who can participate, and all taxation is passed through to its members; and ii) a limited liability company is not required to establish or maintain the same types of business records as a corporation (e.g., minutes, notes or other records). If you need help Choosing between a Texas Member Managed or Manager Managed LLC you can find additional information by clicking the link!


Does A Limited Liability Company Protect My Personal Assets?

In Texas, a limited liability company that meets state regulations may also protect the members (owners) from personal liability in the event the limited liability company is ever sued.  This means that even if the limited liability company is liable to a creditor or other oblige, the personal assets of the members of the limited liability company are not subject to attachment or levy unless the member has signed a written guarantee to be personally liable.  When you work with our lawyers, you can be assured you will receive direct legal counsel from a well-versed lawyer in business, limited liability company formation, and commercial law. 


What Are the Advantages & Disadvantages Of A Limited Liability Company? 

When beginning a business, you must decide what form of business entity to establish. Some of the most common business forms include the sole proprietorship, partnership, limited liability company, and corporation. It starts with choosing a name for your company and filing an organizational document listing officers, appointing agents, setting up corporate records, creating bylaws or operation agreements, appointing directors, and even issuing stock or membership interests, depending on your choice of entity.  A limited liability company has certain advantages over other types of entities, such as:

 

  • LLCs offer limited liability protection to their owners

 

  • LLCs offer fewer corporate formalities

 

  • LLCs offer tax advantages to avoid double taxation

 

  • LLCs offer liability protection to all members

 

  • LLCs can be managed without formal structure

 

  • LLC profit distributions do not have to be equal

 

Dallas Corporate Formation Lawyers

At Wilson Legal Group, our Dallas business lawyers can assist you in forming and maintaining a limited liability company or other corporate forms. 


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Additional Business Focus 

How Do I Choose The Proper Entity Type for My Business?

When beginning a business, you must decide what form of business entity to establish. The most common business forms are sole proprietorship, partnership, limited liability company, and corporation. It starts with choosing a name for your company and filing an organizational document listing officers, appointing agents, setting up corporate records, creating bylaws or operation agreements, appointing directors, and even issuing stock or membership interests, depending on which you choose. There are also tax and liability laws, insurance requirements, copyright and trademark laws, and more that will affect your name and entity choices. Our business lawyers are trained in these complexities and can assist you in making your business dreams come true. If you need help Choosing between a Texas Member Managed or Manager Managed LLC you can find additional information by clicking the link!


What Is The Difference Between LLP and LLC?

Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) combine aspects of corporations and partnerships; however, they have different management requirements, liability protections, liability insurance obligations, and tax benefits which may vary from state to state. LLCs are either member-managed or manager-managed. LLPs are similar to a general business partnership, and each partner can manage all or specific duties as agreed by the partners. As for liability, LLP partners are only personally liable for their own negligence and not liable for another partner’s mistakes; however, an LLC member is generally only responsible for up to their initial investment in the LLC. Importantly, LLCs and LLPs are not recognized as business entities by the Internal Revenue Service (IRS). Therefore, all taxes flow through to individual partners according to their ownership interests through a Schedule K-1. Schedule K-1 is an Internal Revenue Service (IRS) tax form issued annually to invest in partnership interests. The purpose of Schedule K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits. You must be certain to check your state-specific law before forming an LLC or LLP.

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Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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