Should you be looking to protect your business and run with increased flexibility and adaptability, setting up an LLC in the state of Texas is a smart choice. The method isn’t as difficult as it look, but you’ll need to adhere to a some important procedures to keep things compliant and smooth. From picking a name to submitting the necessary forms, each action has a essential role—so prior to you begin, there’s something you should consider first.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a good decision. While it’s relatively simple, you should follow key steps and stay in compliance and run smoothly. Beginning with picking your name to submitting forms, each action is crucial—here’s what to follow initially.
Choose a Name for Your Texas LLC
Before official registration, you must select a available name that meets Texas state rules.
Begin by 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.”
Stay away from words that might suggest government departments such as “bank” or “treasury.”
Avoid using prohibited words unless you have specific authorization.
After choosing your name, consider reserving it to protect it while you prepare your formation documents.
Choosing Your Registered Agent
All Texas LLCs are required to appoint a registered agent to receive legal documents and official notices on behalf of the business.
Your agent must have a physical address in Texas—P.O. boxes are not accepted.
You can serve as your own registered agent, use a paid service, or appoint someone you trust.
Ensure your agent is reachable during business hours to accept attachments and notices. Dependability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To officially 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.
This document requires your LLC’s name, main location, agent details, and management structure.
Double-check all information carefully; mistakes can cause delays.
Filing fee is $300, pay by credit card or mail.
After approved, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Create an Operating Agreement
Even though Texas doesn't require an LLC to have an operating agreement, this document is highly recommended to set management 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, drafting an operating agreement provides legitimacy and additional legal protection.
Download a sample or write your own tailored document, and everyone endorse it to confirm their roles.
Post-Formation Legal Steps in Texas
Next filing your LLC, you need to register for an Employer Identification Number from the IRS—this is free and needed for tax purposes, even if you don’t plan to hire employees.
Review whether yourbusiness needs additional licenses or permits, based on more info your activities.
Remember to, submit annual Texas Franchise Tax Public Information Report to maintain your LLC’s compliance and avoid penalties.
Final Tips
Starting 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.