Avoiding Errors When Filing Business Formation Documents

 Posted on October 11, 2023 in Business Law

Registering a new business entity requires properly completing various legal filings like certificates of formation and operating agreements. Unfortunately, minor errors on these crucial documents can derail your entire company launch. Failing to thoroughly research name availability, not filing with the county, and listing an ineligible registered agent - mistakes like these lead to frustration and delays. A Texas lawyer can make sure you process your business formation documents properly.

Double Check Business Name Availability

Successfully registering your new Texas business entity requires properly completing numerous legal documents like certificates of formation and operating agreements. Unfortunately, small mistakes or omissions on these crucial filings can sabotage your entire company launch.

Errors like selecting the incorrect business name or identifying the wrong registered agent led the Texas Secretary of State to reject your filing outright, causing delays that left your company inoperable. Other oversights allow approval but create serious issues like personal liability exposure down the road.

Do Not Forget County Registration

That’s why partnering with an experienced Texas business attorney is essential when registering your partnership, LLC, or corporation. Legal experts ensure all necessary filings fully comply with Texas statutes and avoid easily overlooked yet critical errors, including:

• Failing to check business name availability - The name you select must be distinguishable from existing entities and conform to rules about restricted terms. Identical or deceptively similar names will be rejected.
• Not recording with the county - All Texas entities must also file a certificate with the county clerk to complete the process and officially form. Omitting county registration stall operations.
• Pick the Right Registered Agent - Using a false or non-compliant registered agent - Your registered agent must meet Texas residency and eligibility rules and consent to serving in the role. Incorrect agent names prevent the proper service of legal papers.

Classify Your LLC Correctly

Incorrectly classifying LLCs - LLCs must choose tax classifications like single-member, multi-member, or non-profit. Picking the wrong class disrupts operations.

Finalize Your Operating Agreement

Not executing operating agreements - Partnerships and LLCs require binding operating agreements governing ownership percentages and operating procedures. Failing to finalize these properly opens the doors to major infighting.

Before launching any new venture, make sure that all required formation documents are handled thoroughly and that legal obligations are fulfilled.

Contact a Comal County, TX Small Business Lawyer

Do not gamble with your start-up over easily avoidable formation errors. Work with an experienced Bexar County, TX small business attorney to ensure your filings fully comply and establish a solid legal foundation. Call Geoff Mayfield, Attorney at Law at 210-535-0870 for a free consultation.