5 Critical Things to Consider When Making an LLC in Dallas
Creating an LLC in Dallas is a complex process, highly dependent on the business's size, goals, and industry2 min read
Creating an LLC in Dallas is a complex process, highly dependent on the business's size, goals, and industry. To make sure you're getting the right protections and making the right decisions, here is a comprehensive list of the top five things to consider when forming an LLC in Dallas.
1. Choose a Business Type: The business type you choose for your company will determine the complexity of the set-up process, the availability of tax deductions, the ease of transferring assets, and the exposure of personal liability. Before selecting a business type, investigate the different options available and speak with a knowledgeable business attorney to identify the one most appropriate for your business.
2. Choose the Right Name: The name you choose for your LLC should be unique and easy to remember, but also compliant with local laws. The name cannot be the same as an existing business (even if in a different state), it must include an LLC designator, and it cannot include restricted words such as “bank” and “insurance” without obtaining permission from the relevant Texas authorities.
3. Consider the Formalities and Awaiting Responsibilities: It’s important to understand the various formalities and steps that come with forming an LLC. These include drafting and filing the Certificate of Formation, setting up a registered agent, obtaining business licenses and permits, and possibly obtaining a federal or state tax ID number. Additionally, there are ongoing obligations of an LLC, such as filing annual reports, maintaining a separate business bank account, and following proper meeting procedures.
4. Create an Operating Agreement: One of the most important things to consider when making an LLC is creating an Operating Agreement. This document governs the internal operations of the business, sets out members’ roles and obligations, and governs the distribution of profits and losses. It should also address other key issues such as capital contributions and the admission of new members, and must be in compliance with Texas law.
5. Select a Professional Partner: It’s important to have the right support in place when creating and running an LLC. Consider partnering with a licensed business attorney who is well-versed in Texas statutes and regulations to ensure you make the right decisions and protect yourself against legal risk.
Creating an LLC in Dallas is a complex process, but with the right information and guidance, can also be a straightforward one. By considering and addressing these five critical matters, you’ll be well-prepared to take the next steps into launching your business.