Creating an LLC in Dallas - Understanding Local Regulations
Starting an LLC in Dallas: Understanding Texas and Local Requirements2 min read
Starting a limited liability company (LLC) in Dallas requires business owners to become familiar with the requirements of Texas law and local regulations. Below, we take a look at several steps to take when creating an LLC in Dallas, including the formation process, restrictions on operations, and the financial requirements for maintaining a LLC.
When forming a new business in Dallas, choice of business entity is an important decision to make. An LLC is a company vehicle which provides its owners with limited personal liability while continuing to provide the flexibility of a partnership.
In Dallas, it is possible to establish an LLC in a few simple steps. First, it must be determined draft and file the formation documents. These documents must be drafted in accordance with the state’s laws and regulations. Such documents include an operating agreement and the filing of the Articles of Organization with the Texas Secretary of State. Secondly, registering for all applicable taxes at the county and state levels must be accomplished. Finally, it is recommended that a business bank account is opened so that separate accounts are kept for corporate funds and any business related liabilities are segregated.
When running an LLC in Dallas, one important factor to consider is that the company’s operations are limited to the corporate attorney’s approved activities. These activities must also comply with applicable local and state laws or ordinances. This is particularly true for businesses that have operations in Dallas. Depending on the LLC activities, licenses may be required in order to carry out the purpose of the LLC.
Finances related to the LLC are also heavily regulated by the state. Specifically, all LLCs are required to keep active corporate records and accurate financial statements. Additionally, the funds belonging to the LLC must be kept separate from personal funds. A corporate credit card is to be established for all corporate expenses, and bank accounts must be listed in the LLC’s name. Finally, any earned income must be returned to the LLC, rather than bypassing the LLC and entering into the personal pockets of the LLC’s founders.
In summary, forming an LLC in Dallas requires business owners to comply with both the laws of the State of Texas and local regulations. Those forming an LLC must draft and file the necessary formation documents, complete registration for all applicable taxes, open a business bank account, and make sure that all of the LLC’s earnings remain within the possession of the LLC. Proper maintenance and adherence to the laws of Dallas is essential if one wants to ensure the longevity of their LLC.