If you're aiming to shield your enterprise plus work with greater flexibility and adaptability, forming an LLC in the state of Texas is a wise choice. The procedure isn’t as difficult as it might seem, but you’ll need to follow a some key steps to stay compliant and smooth. From choosing your company’s name to filing the right paperwork, each procedure has a vital 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 wise choice. While it’s manageable, you need to follow important actions to stay within the law and be compliant. Beginning with picking your name to submitting forms, each action is vital—here’s what to do first.
Naming Your Texas Business
Before you register, it’s necessary to select a unique 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.”
Stay away from words that might suggest government departments such as “bank” or “treasury.”
Avoid using restricted words unless you have special permission.
Once choosing your name, consider holding it to protect it while you prepare your formation documents.
Appoint a Registered Agent
All Texas LLCs are required to name a registered agent to receive legal documents and official notices on behalf of the business.
The representative needs a real location in Texas—P.O. boxes are not accepted.
It’s possible to act as your own agent, hire a professional service, or appoint someone you trust.
Make sure your the person or service is reachable during business hours to receive attachments and notices. Dependability is key to staying compliant.
File the Certificate of Formation
To legally form your Texas LLC, file 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 asks for your LLC’s name, address, registered agent info, and management structure.
Review all information carefully; mistakes can cause delays.
Filing fee is $300, payable by credit card or mail.
After approved, this filing forms your LLC in Texas, giving you legal 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.
It also 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 professionalism and additional legal protection.
Download a template or write your own tailored document, and all members should sign it to confirm each member’s roles.
Obtain an EIN and Meet Additional State Requirements
Next forming your LLC, you need to obtain an Employer Identification Number from the IRS—this is cost-free and needed for tax purposes, even here if you don’t plan to hire employees.
Review whether yourbusiness needs state or local licenses or permits, based on your activities.
Also, file mandatory Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and prevent penalties.
Summary
Starting your Texas LLC is manageable by following these steps: Pick a unique name, appoint a reliable registered agent, submit formation documents, draft an operating agreement, and obtain your EIN. Keep up with ongoing federal requirements like annual reports and licenses to maintain a compliant, thriving business in Texas.