The Essential Checklist for Dallas Businesses Drafting Articles of Incorporation
More than 75 percent of all businesses in the U2 min read
More than 75 percent of all businesses in the U.S. are small businesses, and many of them use the form of business organization known as a limited liability corporation or LLC. An LLC is a business entity that combines characteristics of partnerships and corporations, providing liability protection for owners while also allowing for pass-through taxation of profits and losses. When an LLC is first formed, it must have Articles of Incorporation drawn up. If you're in the Dallas area and you are looking for legal counsel to help you with your Articles of Incorporation, UpCounsel can help.
When creating your Articles of Incorporation, there are several things you need to consider. Here are the top five:
1. The Name: Your Articles of Incorporation must have a name that adheres to the rules in the state of Texas. Most states have a database of business names to ensure that no two businesses share the same name.
2. The Purpose: Every business must have a stated purpose and any related activities. This will help ensure that the LLC is operating within its legal scope and can help protect the members of the LLC from legal liability.
3. Governance: Your Articles of Incorporation will need to include information about how the LLC will be managed. This includes the roles and responsibilities of members of the LLC, as well as how decisions are made.
4. Member Liability: Your Articles of Incorporation should include a section that outlines how members of the LLC will be liable for the actions of the company. In most cases, this means that the members will not be held personally liable for the actions of the LLC.
5. Taxes: Your Articles of Incorporation should include information about how the LLC will be taxed, as well as how it will file and submit its taxes. Some LLCs can be taxed as a pass-through entity while others must pay taxes just like a corporation.
Forming an LLC in the state of Texas is relatively easy, but it's important to take the time to make sure your Articles of Incorporation have everything you need to ensure your LLC is properly formed and in compliance with state and federal law. If you're in the Dallas area and you need help with crafting your Articles of Incorporation, consider turning to UpCounsel. UpCounsel can provide you with experienced attorneys who understand your needs and have vast experience in LLC formation in the state of Texas.