When Dallas companies decide to incorporate, one of the most important documents they must create is the Certificate of Incorporation. This document isn’t a complicated legal process but serves as the official notification to the state that a company has been formed. The document is filed with the state and contains the company’s name, any directors and officers, and the amount of authorized shares of stock. The key to successfully navigating the Certificate of Incorporation process is to consider all of the factors that apply not only to the company’s legal structure but also to its growth potential. Here’s a look at the top five things to consider when it comes to obtaining your Certificate of Incorporation in Dallas.

1. Name Availability

The first thing to consider when it comes to obtaining your Certificate of Incorporation in Dallas is whether the name you have chosen is available. The Texas Secretary of State’s Corporation Database allows you to search for business entities online, so you can quickly see if the name you’ve chosen is available under the Texas Business Organizations Code (TBOC). You must also check the federal trademark database as well. If the name is already in use, you may have to choose a different one that is both available in Texas and federally registered.

2. Incorporation Structure

When forming a business in Dallas, you’ll need to determine the type of legal entity you’d like to form and what type of tax structure you’d like to use. Depending on the size of your company, the number of shareholders, and the number of annual shareholders’ meetings you’d like to hold, you may opt for a C corporation, an S corporation, a Nonprofit corporation, a Limited Liability Company (LLC), or a limited partnership. The type of entity you form will have an effect on the costs and the tax implications of your company.

3. Shareholders

Once you’ve chosen the legal structure, you’ll need to determine who will be the shareholders of the company. Shareholders are the owners of the company, and in Texas, both natural persons as well as other entities, such as corporations, investors, or banks, can be shareholders. The Certificate of Incorporation must list the shareholders, as they are stakeholders in the company’s success and must be subject to the laws of the state.

4. Directors and Officers

The directors of a company serve as the governing body of the corporation. They are responsible for setting corporate policy and making key decisions that affect the company’s operations. The officers of a company serve as representatives of the company and are tasked with day-to-day operations, such as signing legal documents, making sure the company is in compliance with the laws, and ensuring that shareholders’ interests are protected. The Certificate of Incorporation will need to list the names and positions of all directors and officers of the company.

5. Registered Agents

The final decision when forming a company in Dallas is determining your registered agent. This is the individual, company, or partnership that will represent your business in Texas. The registered agent must maintain a physical address in the state and must accept legal documents on the company’s behalf, such as service of process, tax notices, and other official papers. Your registered agent must be formally listed with the Secretary of State, and the Certificate of Incorporation must contain the registered agent’s name and address.

When forming any corporate entity, the Certificate of Incorporation can seem overwhelming, but it’s actually a fairly straightforward process. By considering these five key items you will be well on your way to obtaining your Certificate of Incorporation in Dallas. In addition, you can always get help from a qualified local lawyer who understands the nuances of local regulation and can guide you through the process.

Topics:

Certificate of Incorporation,

Dallas,

Business Lawyers