Texas is one of the most business-friendly states, offering several incentives for investors, developers, and entrepreneurs to consider launching or expanding their businesses in the state. According to the Texas Economic Development & Tourism Office, “Texas offers companies of all sizes and all industries one of the best business climates in the nation, with a fair, transparent tax and regulatory structure designed for businesses to succeed.” At a more local level, cities and towns throughout Texas encourage new businesses to take advantage of the business-friendly climate and form new ventures. Those who have been wondering how to start a business in Texas can work with a highly qualified and dedicated Texas small business attorney to ensure that they set themselves and their significant investment up for a successful and sustainable future. Although Texas does not require new businesses to hire an attorney to form a registered business, doing so is highly recommended to minimize potential errors or oversights that could lead to substantial complications later on. Let’s take a closer look at some of the key steps to small business formation in Northern Dallas and the surrounding areas.
Choosing a Business Structure
One of the most important steps when launching a new business is selecting a business structure that best aligns with your specific needs and goals. There are several different types of business entities, such as sole proprietorship, limited liability company (LLC), and corporation (to name a few). Each type of structure has its own advantages and limitations, so it’s worth discussing your business goals with a knowledgeable and experienced Texas business formation lawyer to determine which choice best suits your needs. For instance, while a sole proprietorship is often the simplest option for an individual wishing to launch a business, this form of business structure does not offer the personal legal liability protection that’s available when you form an LLC. When you meet with your trusted Texas, business formation attorney, you can identify your specific goals and determine the business structure that best fits and supports those needs.
Registering Your Business Name in Texas
Next, you will need to register and file your business name. Those who move forward with a sole proprietorship or general partnership and wish to conduct business under an assumed name (i.e., a name that differs from the last name of the individual) can file an assumed name certificate (also known as a DBA, or “doing business as”) with their local county clerk’s office. In instances where there is no official business premise to maintain, the DBA certificate can be filed in all counties where the business will be conducted under the assumed name. With incorporated business entities, such as LLCs and corporations, filing a Certificate of Formation in Texas is the way to officially register your business. For more information about registering an LLC or corporation, reach out to a knowledgeable and caring Texas LLC lawyer for the customized legal guidance you need to move forward with confidence.
File Formation Documents in Texas
New LLCs and corporations in Texas will need to file a Certificate of Formation with the Texas Secretary of State. The Texas Secretary of State’s office also addresses some of the most frequently asked questions about the business formation process, such as whether someone is required to be a U.S. citizen or a Texas resident in order to form and operate a business in this state. As one of the country’s most business-friendly states, Texas “does not restrict who can form or have an ownership interest in a business entity, other than requiring the organizer to be a person capable of entering into a contract.” For more information on matters related to Texas business license requirements or the business registration process, reach out to the dedicated and trusted legal team at Sewell Sewell Beard LLC to get started.
Obtain Required Business Licenses and Permits
Depending on the nature of your business, you may need to obtain local business permits. It can be confusing to identify the specific requirements that you will need to address before you can begin conducting business in Texas, so it’s worth discussing the specifics of your situation with an experienced business formation attorney to ensure that you can move forward with confidence. At Sewell Sewell Beard LLC, we believe in partnering with small business owners to help them navigate every step of the business formation process, such as securing local business licenses, filing their registration with the State, developing governing documents, and addressing any zoning compliance issues as they arise.
Draft Internal Governance Documents
Once you have selected a business entity and registered your business, you can put key internal governing documents in place that set your venture up for a strong and successful future. We can help you draft, review, and revise operating agreements, corporate bylaws, and other documents that safeguard your best interests, provide documentary requirements of lenders, and minimize potential legal and financial risks as much as possible. We can also assist you with other tasks, like EIN registration and coordinating and collaborating with tax or financial professionals as needed.
Get Started With a Skilled Texas Business Formation Lawyer Today
Starting a new business is an exciting endeavor! As you prepare for this monumental event, it’s worth seeking out the guidance and support of a highly experienced Texas business formation attorney who can look out for your best interests and encourage you to move forward with greater certainty and confidence. New small businesses that seek legal counsel are often more likely to enjoy long-term success, as they can trust that their business contracts, formation documents, and other critical components will protect them in the event of a potential dispute.
If you are interested in learning more about starting a small business in the Northern Dallas area, the dedicated legal team at Sewell Sewell Beard LLC is ready to answer your questions and address your concerns. Please call our office today at (972) 777-5390 to get started with a caring and knowledgeable business formation attorney.
