What You Need to Know About a Corporation
From Dallas to any other part of the United States, many businesses are looking to establish themselves as a corporation3 min read
From Dallas to any other part of the United States, many businesses are looking to establish themselves as a corporation. There are numerous steps to this process, requiring specific legal documents, filings, and maintenance, which can be overwhelming. It’s important to know the basics of a corporation and formulating a process to properly register it. Without this knowledge, the task of forming a legal corporation can quickly become a daunting one. To make it a little easier, we've outlined the steps of forming a legal corporation in Dallas, as well as the responsibilities associated with this process.
A corporation is a legal entity with rights, privileges, and liabilities specified by the law. Corporations are distinct from individual owners, even though some owners, officers, and directors may be the same person. This means that every person’s liability is separate from the corporation’s, protecting the owners from personal liability, or from being held responsible for the actions of the corporation.
The legal process can differ state to state, so it’s important to become acquainted with the laws of the state you are forming your business in. In the case of Texas, you must first determine the type of company entity and name. Business corporations, nonprofits, and LLCs are all different, and it’s important to understand the differences between them. Each entity will require certain documents to start the process, as well as a registered agent with a Nexus in the state they’re registered. This can be done by appointing a corporate lawyer or a third-party registered agent service, such as LegalZoom or CT Corporation.
Once you have determined the entity of your corporation and have the necessary paperwork prepared, filing with the state can take place. In Texas, the articles of incorporation should include the name, purpose and business address of the corporation, as well as the name and mailing address of the registered agent. The filing fee differs from state to state, so it’s important to have an exact fee before paying. Alongside this, there may be other additional filings depending on the type of entity chosen. For instance, last-minute documents such as tax elections may be required to establish your corporation.
When the state filing has been done, the entity must be properly established to receive the benefits of the corporation. This means setting up corporate bylaws, holding formal meetings, developing articles of organization and electing a board of directors. Each of these steps must be done properly or there can be potential legal risks. It’s best to have an experienced corporate lawyer guide you through these steps, like a legal advisor found on UpCounsel.
By having an advisor in place to properly start your corporation, you can help protect your business from fines or other legal issues. With an experienced attorney on your side, you can rest assured that your business is protected from any legal issues. Plus, UpCounsel’s network of the best lawyers have an average of 14 years of experience and their profiles display client ratings and reviews of recent work. This means you’ll get the suitable counsel for your legal issues.
Navigating the formation of a corporation can be tricky, as many laws and documents must be handled correctly. The best way to mitigate these legal issues is to find a qualified corporate attorney who can help every step of the way. That way, you can confidently move forward with the legal process for forming your business.
Topics:
