The Lone Star State of Texas is home to many small businesses, and one popular way to legally structure your business is an LLC. Limited Liability Companies offer the flexibility of managing your business your way, combined with the legal protections that come with any corporation. If you're a business owner located in Dallas, you may be considering forming an LLC for your business. This guide will provide you with information on the legal requirements for an LLC in Texas, common issues, and suggestions on how to find legal counsel to assist you with the process.

As the proud owner of a Texas LLC, you are subject to the laws of Texas, as well as the laws of the United States. Federal and state laws can be complex, so make sure you understand the intricacies before filing your formation documents. Here are the basics you should know before beginning the LLC formation process in Dallas.

What Needs to be Filed?

In Dallas, the most common document for forming an LLC is the Certificate of Formation, also referred to as the Articles of Organization. This document describes the basics of the LLC, including the name, purpose, address, and the names and addresses of the parties forming the LLC. You will need to file the document with the Texas Secretary of State and pay the required fees. Once you file the Certificate of Formation, your LLC will be officially registered with the state.

What Are the Requirements?

In Texas, an LLC must abide by the state's law regarding limited liability. LLC owners are not personally liable for debts the LLC incurs. Other requirements include filing the appropriate documents with the Texas Secretary of State, paying the required fees, and having a registered agent who will accept legal service of process on behalf of the LLC.

In addition to these requirements, you'll need to register for state and local taxes, acquire necessary licenses and permits, draft an operating agreement, and open a business bank account.

What Are the Benefits?

When you register your LLC in Texas, it will be considered a separate entity from its owners. As such, the LLC is responsible for its own taxes and liabilities. This provides you with personal protection since you won't be held personally liable for any debts the LLC incurs. Additionally, an LLC provides tax deductions and pass-through taxation, meaning any profits are taxed only once.

How to Find Legal Help?

Forming an LLC can be a complicated endeavor, and it's a good idea to have an attorney help you with the process. However, hiring an attorney can be expensive so many small business owners don't feel comfortable spending the money.

Fortunately, there are alternatives. UpCounsel is an online platform that connects you with experienced legal professionals. You can use the UpCounsel marketplace to find an attorney to handle your LLC formation, answer your legal questions, and provide other types of legal services. UpCounsel attorneys offer affordable, high-quality services.

Concluding remarks

LLC formation in Dallas is not a difficult process, but it does require knowledge of the legal requirements. Before beginning the process, make sure you understand the documents you need to file, the fees you need to pay, and any other laws and regulations that may apply. Additionally, if you need help understanding the process or need legal guidance, consider using a service like UpCounsel that can match you with an experienced attorney.

Topics:

LLC Formation,

LLC Requirements,

LLC Benefits