Texas boasts of a ballooning economy and for this reason, a sizeable number of people are considering this state as a destination for tourism, jobs, low taxes, the residents’ hospitality, cheap housing, and a healthy business environment.
The latter is the most appealing, especially to business owners. Thanks to the favorable tax deductions, incentives offered by the government backed by solid Texas regulations, doing business in Dallas may be easier than your current location.
To expand on the taxes, Texas has a franchise tax policy. Therefore, businesses which record annualized revenues of no more than or equivalent to the no tax limit will not pay franchise taxes.
Setting up a Business in Dallas
Relocating or setting up a business in Texas involves going through a number of steps:
Partnerships and sole proprietorships have an easy time during this process. Some of the requirements include applying for a “doing business as” (DBA) certificate in Dallas, Texas.
On the other hand, moving a limited liability company or a corporation is more difficult compared to partnerships and sole proprietorships.
However, the option you’ll choose will depend on the fees and other overall costs such as an internet connection for your business. If you have no idea what you must set aside, check out www.digitalexits.com for more information.
In addition, you’ll have to deal with various legal hurdles.
Foreign Entity Registration
You’ll need to register your business as a foreign entity if it’s registered in a different state. This will be the case if you intend to transact business in Dallas, Texas. This means you have an office or an employee in Dallas.
However, keep in mind this may cost you a bit more since you must pay annual fees to keep the registration as a foreign entity.
Continuity is a major reason why business owners may want to convert their businesses to Dallas, Texas. However, for this conversion to be effective, the original jurisdiction must approve the transaction. In addition, you must meet the conversion laws laid out in both Texas and the original state.
The process needs accuracy since you’ll be synchronizing information from two states and there should no margin for error. This information includes the business name as well as a conversion plan which will give you the necessary authorization to move your business to Texas.
You can use this as a workaround to business conversion just in case the original state doesn’t accept conversions. This process involves setting up a business in Texas. Afterward, you can merge the original and the new business in Texas.
If your business is already a foreign entity registered in Texas and you want to convert it into a complete Texas entity, then you must follow the laid-out procedures for a successful conversion. After completing the conversion, your business will seize to exist as a foreign entity in Texas. Instead, it’ll acquire a Texas entity registration.
To sum up, moving a business to Dallas needs serious considerations. This includes analyzing available options and the procedures you need to adhere to for a successful switch.