Should you be looking to protect your business and run with greater flexibility, setting up an LLC in Texas is a good move. The procedure isn’t as complicated as it look, but you’ll need to adhere to a few key procedures to keep things lawful and efficient. Beginning with selecting your business name to filing the right paperwork, each procedure plays a important part—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 smart choice. While it’s manageable, you must adhere to essential actions to stay within compliance and run smoothly. Beginning with picking your name to filing paperwork, each step is important—here’s what to follow initially.
Choose a Name for Your Texas LLC
Prior to filing, it’s necessary to select a available name that complies with 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.”
Avoid words that could be confused with government agencies such as “bank” or “treasury.”
Don’t using restricted words unless special permission.
After choosing your name, consider securing it to keep it while you complete your formation documents.
Appoint a Registered Agent
All Texas LLCs are required to appoint a registered agent to accept legal documents and official notices on behalf of the business.
Your agent needs a check here real address in Texas—P.O. boxes are not accepted.
You can serve as your own agent, hire a paid service, or appoint someone you trust.
Ensure your agent is dependable during the normal working hours to accept attachments and notices. Reliability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To legally create your Texas LLC, submit the Form 205 with the Texas Secretary of State.
You can do this via the SOSDirect portal or by mail.
This document asks for your LLC’s name, main location, registered agent info, and structure of management.
Double-check all information carefully; mistakes can cause processing issues.
The $300, pay by credit card or mail.
Once processed, this filing forms 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 highly recommended to set management 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, creating an operating agreement adds professionalism and assets safeguard.
Download a template 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 yourindustry needs additional licenses or permits, based on your activities.
Also, submit mandatory Texas Franchise Tax Public Information Report to keep your LLC’s compliance and avoid penalties.
Conclusion
Starting your Texas LLC is simple by following these steps: Choose a unique name, appoint a reliable registered agent, submit formation documents, draft an operating agreement, and obtain your EIN. Stay up with ongoing state requirements like annual reports and licenses to keep a compliant, thriving business in Texas.