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Expanding Your Business To Texas? Dallas Foreign Entity Registration Lawyers.

Broadening your market reach in Dallas can be a great move for your business. However, you must be wary of certain laws about Texas foreign entity registration. Understanding what these mean for your company is essential to avoid consequences that hit your capital.

If you need guidance on this matter, let Palmer Lehman Sandberg, PLLC help you. We have been helping small business owners who encounter legal difficulties regarding their registration for more than 30 years.

What Counts As “Transacting Business” In Texas Under BOC Section 9.251?

Texas law does not have explicit definitions of what activities count as transacting business in the state. However, the Business Organizations Code Section 9.251 outlines 16 safe harbor activities that do not constitute “transacting business.” Some examples include:

  • Opening or maintaining bank accounts
  • Settling claims and disputes in Texas courts
  • Selling products and services through an independent contractor
  • Completing a one-time, isolated transaction within 30 days

If you keep an office, hire employees or conduct business activities anywhere in Texas, you must abide by the foreign registration requirements.

Penalties For Unregistered Foreign Entities: Court Restrictions And Back Taxes

Failing to formally register your business in Texas could result in costly penalties.

  • Should you need to file lawsuits, Texas bars you from maintaining an action in court until you register your entity.
  • Your business is also subject to fees and taxes the state would impose if you had it registered.
  • If you transact business for more than 90 days without registering, the Texas Secretary of State (SOS) charges you a late fee.

Navigating Texas Name Availability And Fictitious Name Filings

When registering your business in Texas, it is possible to encounter issues about using your company’s real legal name. If another entity operates under the same name or a similar name as yours, consider following these steps to resolve the matter:

  • Double-check the records present in the Texas SOS database to see if an existing company is using your legal name.
  • Select an available alternate name to maintain business activities in Texas.
  • File an Assumed Name Certificate with the Texas SOS to register the fictitious name together with your Foreign Registration Statement.

As business lawyers in Dallas, we understand that this problem can be stressful to navigate, especially when you are unfamiliar with Texas state laws. Our team can step in and handle the legal matters of registering your foreign business.

Register Your Foreign Corporation In Texas With Dependable Guidance

We invite you to discuss your concerns with our business law attorneys about direct registration with the Texas SOS. Call us at 214-242-6444 or fill out our online contact form to schedule a consultation.

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