5 Important Things to Consider When Incorporating in Dallas, Texas
Incorporating Your Business in Dallas: Consider All Factors for Legal and Financial Protection2 min read
As a business owner in the Dallas, Texas area, it is important to consider all the factors that go into incorporating your business in order to protect it from legal and financial issues. Incorporation is an agreement that formally recognizes a business as an artificial person, allowing the business to exist separately from its owners. This state of legal existence allows the business to enter into contracts, take out loans, and own assets.
Setting up a corporation requires a significant amount of paperwork and legal procedures, so having an understanding of the process and the requirements ensures you can make the correct decisions when incorporating your business. Here are the top 5 things to consider when incorporating in Dallas, Texas:
1. Choose the Right Structure
The first and most important step when incorporating in Dallas is deciding which structure is the most suitable for your business. Depending on the nature of your business, you may need to form a limited liability company (LLC), a limited partnership (LP), or a corporation. Each type of entity offers unique benefits and legal protection, so it’s important to research each and select the one that best suits your needs.
2. Select a Corporate Name
When selecting a corporate name, it’s important to make sure it meets the naming restrictions of the state. Additionally, you’ll also need to research and make sure the proposed name isn’t already in use in Texas, as it could cause confusion and draw unwanted legal attention.
3. File Articles of Incorporation
Once you’ve settled on a corporate name and entity structure, you will need to file articles of incorporation to the Texas Secretary of State. The articles will include the name of the business, its primary purpose, and other pieces of information that will be used to register the business with the state and obtain a federal employer identification number (FEIN).
4. Create a Corporate Bylaws Document
In order to ensure the ongoing success of your newly incorporated business, you will need to create and adhere to corporate bylaws. This internal document will set out the procedures and protocols that will govern how the business is run. This document will ensure your company is operating within all applicable laws and regulations, and also acts as a roadmap to guide the business in the right direction.
5. Get Professional Legal Advice
Getting advice from a qualified and experienced legal professional is a must when operating in Dallas, Texas. Not only can they help you to craft the articles of incorporation, but they can also go in-depth about other issues such as taxes, contracts, and potential liabilities.
The lawyers in the UpCounsel network have extensive experience in local business law, and also have a vast global network that can provide you with a personalized approach to legal issues. Whether you need a one-time consult or an entire freelance legal department, UpCounsel is the right choice for your legal needs.