With the Dallas-metropolitan area being such a bustling city full of business opportunities, it's no surprise to many that it would draw the attention of entrepreneurs, business owners, and investors. But no business venture is more important than ensuring you are safe in the eyes of the law. To safely launch and manage a business in the area, you will need the assistance of qualified, trustworthy business lawyers to answer any legal questions you have. But where can you find those lawyers and the answers you need?

UpCounsel is an innovative online platform built to help meet the needs of business owners across the United States. This platform connects businesses with experienced lawyers who have experience in the legal realm specifically tailored for business interests. Whether you need a one-time consulting or an entire team of lawyers, UpCounsel has your back. From large corporations to growing startups, the attorneys in UpCounsel's network have the skills and expertise necessary to provide a quality, cost-efficient service.

This article will explore commonly asked questions New-York legal advisors receive, such as which entities can be formed in the area, common terms business owners should know, and more. It is important to remember that though UpCounsel offers legal advice and guidance, its attorneys have no agency or authority to represent you in a court of law. To protect yourself and your business, consider seeking the aid of a licensed lawyer in the area.

Business Structures

One of the first questions potential business owners ask is how they can register their business in the Dallas area. There are two main types of entities - corporations and LLCs - that may be formed to legally start a business.

In terms of corporations, there are three chief types: C corporations, S corporations, and Benefit corporations. C corporations are the most common type of legal structure and have no restrictions in terms of ownership or shareholders. Conversely, S corporations have limits in the number of shareholders, while Benefit corporations are companies whose main goal is to create a positive impact on society or the environment.

Likewise, LLCs (limited liability companies) are businesses that have limited liability, meaning the owners cannot be personally responsible for the company's debts or legal issues. LLCs have the same tax structure as a conventional corporation, with owners being able to report their share of profits and losses on their personal tax returns.

Corporate Registrations

Regardless of the structure you choose, it is important to understand how to properly form an entity in the Dallas area. Companies must register their names through the Secretary of State's website, as well as submit formation documents. These documents include articles of incorporation, operating agreements, and other materials that will outline the goals, duties, and obligations of the business. Additionally, businesses may need to obtain federal ID numbers and register for local taxes.

Business Terminology

In addition to the complex legal paperwork, business owners should understand a few terms commonly used by lawyers in the Dallas area. For instance, business attorneys will often discuss "due diligence," which is the process of examining information pertaining to a potential investment to determine the associated risks and rewards. Additionally, the term "indemnification" is frequently used and refers to one business compensating the other for any losses they incur due to something that was done or not done.

Business owners should also be familiar with terms that define contracts. For instance, contracts may contain an "uberrimae fidei" clause, which is an obligation of good faith and fair dealing between the parties involved. Moreover, terms such as "non-compete agreement" and "covenant not-to-sue" should be understood to ensure a smoother transaction. Finally, "tort liability" is a term used to describe any wrongful action that results in damages, including negligence and failure to take precautionary steps.

Conclusion

Whether you're just starting your business or managing a complex international enterprise, having the right legal knowledge is imperative to a smooth and successful operation. It is essential to understand the legal complexities that come with the corporate world, especially when dealing with that of Dallas-area attorneys. With UpCounsel, you can easily find experienced lawyers who understand the current legal landscape of the area and can help you protect your business.

Topics:

Business Lawyers,

Dallas Area,

Legal Questions