If you’re looking to protect your company and run with greater flexibility, setting up an LLC in Texas is a wise move. The method isn’t as difficult as it look, but you’ll need to follow a some key procedures to keep things lawful and efficient. Starting with picking a name to filing the right paperwork, each procedure plays a important 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 good choice. While it’s relatively simple, you must adhere to key steps and stay in compliance and be compliant. From selecting a name to submitting forms, each action is important—here’s what to do first.
Naming Your Texas Business
Before you register, you must choose a distinctive name that complies with Texas state regulations.
Use the search tool of the Texas Secretary of State to verify name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
Refrain from words that might suggest government departments such as “bank” or “treasury.”
Avoid using restricted words unless special permission.
Once choosing your name, consider reserving it to protect it while you prepare your formation documents.
Choosing Your Registered Agent
Every Texas LLCs are required to appoint a registered agent to accept legal documents and official notices on behalf of the business.
Your representative must have a physical location in Texas—P.O. boxes won’t do.
It’s possible to act as your own agent, use a professional service, or appoint someone you trust.
Make sure your agent is reachable during the normal working hours to receive attachments and notices. Dependability is key to staying compliant.
File the Certificate of Formation
To legally create your Texas LLC, submit the Form 205 with the Texas Secretary of State.
You can do this online or by mail.
This document requires your LLC’s name, address, agent details, and management structure.
Double-check all information carefully; mistakes can cause processing issues.
The $300, payable by check or online payment methods.
After approved, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Draft Your LLC 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 clarifies procedures for matters like voting and management.
Even if you’re a single-member LLC, drafting an operating agreement provides professionalism and additional legal protection.
Download a sample or write your own tailored document, and everyone should sign it to confirm each member’s responsibilities.
Handling Tax IDs and Licensing
After 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 read more additional licenses or permits, based on business activities.
Remember to, submit annual Texas Franchise Tax Public Information Report to maintain your LLC’s compliance and prevent penalties.
Final Tips
Forming your Texas LLC is manageable by following these steps: Choose a unique name, appoint a reliable registered agent, submit formation documents, write an operating agreement, and register your EIN. Stay up with ongoing state requirements like annual reports and licenses to keep a compliant, thriving business in Texas.