Top 5 Things to Consider When Creating an LLC in Dallas
Creating an LLC, or limited liability company, is an important decision for business owners2 min read
Creating an LLC, or limited liability company, is an important decision for business owners. By establishing an LLC, you ensure that your personal liability is separated from the actions of the business. The structure of an LLC also provides a means of taxation as well as a framework to manage the company. However, before you begin to establish an LLC, there are certain things to consider in order to protect yourself and ensure that the document is compliant with state law. This article discusses the top five things to consider when creating an LLC in Dallas, Texas.
Firstly, an LLC in Dallas must comply with State regulations, and it is important to understand the business code of the State. The Texas Business Organizations Code describes the laws governing an LLC’s formation, management, and dissolution. The Code applies to entities such as LLCs, partnerships, and corporations and is intended to provide business owners with the information they need to operate their business legally and effectively. It is important to read and understand the Code and ensure your LLC is compliant.
Secondly, you must choose a business name. All LLCs must have a distinct name that is easily distinguishable from any other registered business entity. Additionally, the name must not contain restricted words such as “Bank”, “Insurance” or “Government” which bring accountability and responsibility with them. It is recommended that you search the Secretary of State’s web site to ensure that your name is unique and that you can register it online.
Thirdly, the Articles of Organization must be filed and approved. This document is used to register an LLC with the State and must contain specific information such as a name and purpose for the business, the address of the registered office, and the names and addresses of the LLC members. Before filing the article, the information must be accurate and complete.
Fourthly, a Registered Agent is needed to receive any official government communication or notice. He or she must have a physical address in Texas and agree to accept delivery of the notice for the LLC. The registered agent can be a manager within the LLC itself but may also be a third-party person or entity.
Last but not least, an Operating Agreement should be formulated and adopted by all LLC owners. This document details the arrangement that the members of the LLC have regarding the management and operation of the company, such as the responsibility and power of each member, how profits and losses will be distributed, and how disputes are resolved. This is important for all LLCs with multiple members and helps regulate decision-making and ensure fairness for all owners.
Creating an LLC in Dallas can be a long and complicated process, but with the proper legal counsel, you can ensure that you are protecting your business and complying with state law. It is essential to have a thorough understanding of the laws regarding LLCs in Dallas and to take advantage of a lawyer’s expertise to ensure that the process is completed as efficiently and effectively as possible.