Importance Of Legal Help To Create A Corporation

A corporation is a popular business form for two reasons one

, it operates as a legal entity completely separate from the shareholders, and two, it often offers tax benefits. To form a corporation, you need to file a "certificate of incorporation" or "articles of incorporation". You need to do this filing with the Secretary of State of Texas.

A corporate lawyer can handle the filing of the corporation. This certificate or articles of incorporation must contain certain details like:

Provisions regarding the corporate management of the business

Provisions protecting the corporation's directors and officers

Provisions limiting the personal liability of directors and officers

The information pertaining to the rights and responsibilities of the corporate shareholders are present in Texas corporation statutes. These statutes provide basic rules concerning:

1) The formation of a corporation

2) The officials necessary for the corporation

3) The annual reports the corporation requires to file

Understanding the Texas statutes with regard to forming a corporation is not easy without adequate legal knowledge. This is why you need a corporate lawyer for advice and counsel while you set out to create a corporation. He can also help you decide on which kind suits your requirement better the S Corporation or the C Corporation.

A particular set of rules governing the functioning of the corporation, or the Bylaws, are also another important document associated with the formation of the corporation. It is the responsibility of the shareholders to adopt the particulars of the bylaws. You need legal assistance in formulating this set of laws as well.

However, the bylaws are not rigid. Proper voting, by shareholders and/or directors, can amend any of these rules regarding the running of the corporation. The amendment procedure must adhere to the corporation law prevalent in Texas as well as the provisions mentioned in the certificate/articles of incorporation.

Whether you want to form a corporation or want to transform your business into that form, it is necessary to contact a competent Texas corporate lawyer. He has in-depth knowledge of the state laws regarding the formation procedure and helps ascertain that you adhere to these rules.

Moreover, a corporate lawyer can also prepare and review documents with regard to the incorporation. Whether it is the certificate or articles of incorporation, or the bylaws, every document requires careful scrutiny by a legal professional. Only then you would be able to make them free from errors and omissions.

A lawyer directory has been exclusively designed to refer qualified attorneys. You can visit this site to acquire better service from reputed law firms.

by: Ashley Smith

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