The decision of registering a business as a limited liability company (LLC) or a Doing Business As (DBA) can be intimidating, especially in Dallas where local regulations may be unfamiliar. That is why it is important that business owners partner with the right legal counsel to ensure that the business is properly registered. Understanding the different characteristics of each option can help business owners make an informed decision and ensure that their business operates smoothly.

First, it is important to understand what each type of business entity truly entails and what are the core components of each. LLCs are seen as existing separately from its owners, shields its owners from personal liability and protects them from being held personally responsible for any debts, legal issues, or economic losses that may be incurred by the company. In comparison, DBAs (said as "D-B-A" or "dee-bee-ay") are a type of fictitious name used by businesses that wish operate under a different name than what it was originally registered as without forming a legal entity or corporation. DBAs still remain part of the same legal entity, meaning that their owners may still be liable for the bad choices and bad debts of the business.

When looking into registering for a business in Dallas, it is important to first consider the legal requirements and regulations associated with the size, scope, and timeline of the business. Though LLCs are the most popular business type among small business owners, DBAs may be better suited to businesses that expect limited personal liability and logo recognition. Business owners need to consult an attorney about the specific regulations related to their trade when deciding which entity to register under.

In order to establish a business entity in Dallas, there are certain steps and materials that must be provided. Business owners must first register with the Texas Secretary of State, as well as the County Clerk in their county of residence. It may be necessary to secure a Federal tax I.D. (also known as an Employer Identification Number) as well. In addition, business owners must register for any applicable taxes like sales tax and withholdings.

Business owners must be aware of the requirements and potential liabilities associated with opening a business in Dallas. Professional advice should be sought when in doubt and completing a business entity questionnaire can help business owners determine whether registering as an LLC or DBA is the right option for their business.

When selecting an attorney for help with the registration process, it is important to choose a counsel that specialize in business law and are familiar with local regulations. UpCounsel exists to connect businesses with qualified and experienced attorneys who are well-versed in the regulations associated with starting a business in Dallas. Whether you are looking for a one-time consult or a full-service contract attorney, UpCounsel’s network of business lawyers can help you make the best decision while establishing your business in the Dallas area.

Topics:

DBA,

LLC,

Business Registration