How to Form an LLC in TX
How to Form an LLC in TX
Blog Article
If you’re aiming to protect your company and run with greater flexibility, forming an LLC in the state of Texas is a good move. The method isn’t as difficult as it might seem, but you’ll need to follow a some important procedures to stay legal and effective. Beginning with picking a name to filing documents, each procedure plays a essential role—so before you move forward, there’s something you should consider first.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a good choice. While it’s not overly complex, you need to follow important steps to stay within compliance and run smoothly. Beginning with picking your name to submitting forms, each action becomes crucial—here’s what to do initially.
Selecting a Name for Your Texas LLC
Before you register, you must select a unique name that meets Texas state regulations.
Start by the online database of the Texas Secretary of State to check name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
Refrain from words that could be confused with government agencies such as “bank” or “treasury.”
Avoid using prohibited words unless you have specific permission.
Once choosing your name, consider holding it to keep it while you complete your formation documents.
Appoint a Registered Agent
Every Texas LLCs must designate a registered agent to accept legal documents and official notices on behalf of the business.
Your agent must have a physical location in Texas—P.O. boxes won’t do.
It’s possible to serve as your own registered agent, use a professional service, or designate someone you trust.
Ensure your agent is reachable during the normal working hours to receive attachments and notices. Dependability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To legally form your Texas LLC, submit the Certificate of Formation with the Texas Secretary of State.
You can do this via the SOSDirect portal or send a paper form.
The form requires your LLC’s name, main location, agent details, and structure of management.
Double-check all details carefully; errors can cause delays.
The $300, pay by credit card or online payment methods.
After approved, this filing forms your LLC in Texas, giving you official recognition and the ability to operate legally.
Draft Your LLC Operating Agreement
Though Texas not required an LLC to have an operating agreement, it’s a wise move to outline ownership roles, profit sharing, and responsibilities.
Furthermore aids in preventing disputes among members and sets procedures for matters like voting and management.
Whether you’re a single-member LLC, creating an operating agreement adds legitimacy and additional legal protection.
Download a template or write your own tailored document, and all members should sign it to confirm their responsibilities.
Post-Formation Legal Steps in Texas
Next forming your LLC, you need to register for an EIN from the IRS—this is cost-free and needed for financial purposes, especially you don’t plan to hire employees.
Check whether yourindustry needs state or local licenses or permits, based on your activities.
Also, submit mandatory Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and avoid penalties.
Summary
Starting your Texas LLC is simple by following these steps: Choose a unique name, appoint a reliable registered agent, file formation documents, draft more info an operating agreement, and obtain your EIN. Stay up with ongoing state requirements like annual reports and licenses to maintain a compliant, thriving business in Texas. Report this page