If you’re looking to safeguard your company and run with greater freedom, establishing an LLC in the state of Texas is a smart decision. The method isn’t as complicated as it appear, but you’ll need to follow a small crucial steps to keep things compliant and efficient. Starting with selecting your business name to filing the right paperwork, each step serves a vital function—so prior to you start, there’s an essential point to think about.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a wise decision. While it’s not overly complex, you need to complete essential steps to stay within the law and be compliant. From choosing your business name to submitting forms, each step is important—here’s what to follow first.
Selecting a Name for Your Texas LLC
Prior to filing, it’s necessary to choose a distinctive name that meets Texas state regulations.
Use the search tool of the Texas Secretary of State to check name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
Avoid words that could be confused with government departments such as “bank” or “treasury.”
Avoid using prohibited words unless special permission.
After choosing your name, consider securing it to keep it while you prepare your formation documents.
Choosing Your Registered Agent
Every Texas LLCs are required to name a registered agent to accept legal documents and official notices on behalf of the business.
The representative must have a real address in Texas—P.O. boxes are not accepted.
It’s possible to act as your own registered agent, hire a paid service, or appoint someone you trust.
Ensure your the person or service is reachable during business hours to receive attachments and notices. Reliability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To legally create your Texas LLC, submit the Certificate of Formation with the Texas Secretary of State.
You may do this online or by mail.
This document requires your business’s name, main location, registered agent info, and management structure.
Double-check all information carefully; errors can cause processing issues.
Filing fee is $300, payable by check or mail.
Once processed, this filing establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Establish Rules for Your LLC
Though Texas not required an LLC to have an operating agreement, it’s a wise move to outline ownership roles, profit sharing, and responsibilities.
It also aids in avoiding disputes among members and clarifies procedures for matters like voting and management.
Even if you’re a single-member LLC, drafting an operating agreement adds legitimacy and additional legal protection.
Download a sample or write your own tailored document, and everyone should sign it to confirm each member’s roles.
Obtain an EIN and Meet Additional State Requirements
Next forming your LLC, you need to register for an EIN from the IRS—this is free and needed for financial purposes, click here even if you don’t plan to hire employees.
Check whether yourbusiness needs additional licenses or permits, based on business activities.
Remember to, submit mandatory Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and avoid penalties.
Final Tips
Forming your Texas LLC is easy by following these steps: Pick a unique name, designate a reliable registered agent, file formation documents, draft an operating agreement, and obtain your EIN. Stay up with ongoing federal requirements like annual reports and licenses to maintain a compliant, thriving business in Texas.