How to Get Started with a C-Corp in Dallas
Forming a C-corporation (or simply, a “C-corp”) is a complex endeavor3 min read
Forming a C-corporation (or simply, a “C-corp”) is a complex endeavor. With so many legal requirements, it's easy to become overwhelmed and uncertain of where to even begin. In Dallas, especially, it's important to be well-informed of the local laws and regulations, and to consult experts who understand the market and area. Fortunately, UpCounsel can connect you with business lawyers who have experience with C-corp formation in Dallas so you can rest assured knowing your business is following the law and protecting your best interests.
A C-corp is a type of business entity that is separate and distinct from its owners. It pays its own taxes, provides limited liability for shareholders and owner-employees, and has the potential to raise money through outside investors. As such, it is the most complex, comprehensive business structure in the United States and should be carefully considered before establishing one. That being said, a C-corp offers numerous advantages and has become one of the most popular business entities in America.
In Dallas, when starting a C-corp, there are several key steps to consider. These competent legal services can be handled by experienced business attorneys at UpCounsel who specialize in Dallas-specific law. Check out five steps of how to get started with a C-corp in Dallas.
1. Choose a Name and an Entity Structure
The first step toward forming a C-corp in Dallas is to pick a unique business name that complies with Texas state regulations. The name cannot be the same or too similar to an existing business entity, and may need to contain “corporation,” “incorporated,” “limited,” or an abbreviation of one of these terms. Once you've settled on an appropriate business name, you should choose your C-corp's entity structure. In most cases, you will form a regular C-corp, but you might also wish to move ahead with a professional or non-profit C-corp.
2. Convene the First Meeting of the Board of Directors
The next step is to hold a meeting with the corporation's board of directors. This team will manage the company, set up organizational bylaws, and address any other aspects of the entity. The board of directors should be composed of owners or investors, and minutes of the meeting should be recorded for legal purposes.
3. File Articles of Incorporation
After the first meeting of the board of directors has taken place, you must file Articles of Incorporation with the Texas Secretary of State. To file these documents, you'll need to include the C-corp's name, purpose, business address, number of shares, and officers, among other things. Completing this step officially forms your corporation and allows you to move forward with registering with the state and local agencies.
4. Obtain an Employer Identification Number
Once the C-corp is formed, you will need to register with the Internal Revenue Service (IRS) and obtain a federal employer identification number (EIN). This number is necessary for many business activities, such as filing taxes and setting up bank accounts. Usually, this step is fairly simple; you will need to complete an online application on the IRS website.
5. Comply with Local Regulations
Finally, in order to operate legally in the state of Texas, you will need to register your C-corp with local agencies. Usually, this includes registering with the county clerk and applying for an assumed name certificate. Additionally, depending on the city, you may need to acquire licenses and permits from the local government.
In the end
Navigating the complexities of forming a C-corp in Dallas requires extensive knowledge of local regulations and laws. Having an experienced business lawyer on-hand can make the process significantly smoother, and UpCounsel can connect you with experienced attorneys who understand Dallas' legal landscape. Whether you need a one-time consult or an entire legal department, their network of experienced lawyers has you covered.