Under Texas law, do some entities protect assets better than other entities?
A. Given the litigious environment in the United States (see FAQ above), one important goal of a sound estate plan is to protect your personal and business assets from potential lawsuits and claims. One method of discouraging lawsuits is by owning your property in a protected manner. One important step in structuring a sound asset protection plan is deciding which form of entity should be used to operate your business or hold your investments. Many Texas physicians use a professional association as the entity through which they operate their medical practices. Otherwise in Texas, limited partnerships and limited liability companies are favored entities for protecting assets.
