If you’re looking to safeguard your company and run with greater flexibility, setting up an LLC in Texas is a wise decision. The process isn’t as hard as it might seem, but you’ll need to complete a small crucial actions to stay lawful and efficient. Starting with choosing your company’s name to filing the right paperwork, each step plays a important role—so before you move forward, there’s a key factor to keep in mind.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a wise decision. While it’s relatively simple, you should follow important actions to stay within compliance and run smoothly. Beginning with picking your 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 available name that meets Texas state regulations.
Use the online database 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 could be confused with government departments such as “bank” or “treasury.”
Avoid using restricted words unless specific authorization.
Once choosing your name, consider holding it to keep it while you complete your formation documents.
Choosing Your Registered Agent
All Texas LLCs are required to designate a registered agent to accept legal documents and official notices on behalf of the business.
The representative needs a physical address in Texas—P.O. boxes are not accepted.
It’s possible to serve as your own agent, hire a professional service, or appoint someone you trust.
Make sure your the person or service is dependable during business hours to accept attachments and notices. Reliability is key to staying compliant.
File the Certificate of Formation
To officially create your Texas LLC, file the Form 205 with the Texas Secretary of State.
You may 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.
Double-check all details carefully; mistakes can cause delays.
The $300, payable by credit card or online payment methods.
Once approved, this filing establishes your LLC in Texas, giving you official recognition and the ability to operate legally.
Draft Your LLC Operating Agreement
Though Texas doesn't require an LLC to have an operating agreement, it’s highly recommended to outline management roles, profit sharing, and responsibilities.
It also aids in avoiding disputes among members and sets procedures for matters like voting and management.
Even if you’re a single-member LLC, creating an operating agreement adds professionalism and additional legal protection.
You may use a template or write your own tailored document, and all members endorse it to confirm each member’s responsibilities.
Post-Formation Legal Steps in Texas
After filing your LLC, you need to register for an Employer Identification Number from the IRS—this is free and needed for tax purposes, especially you don’t plan to hire employees.
Review whether yourindustry needs additional licenses or permits, get more info based on your activities.
Remember to, submit mandatory Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and prevent penalties.
Summary
Forming your Texas LLC is simple 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 keep a compliant, thriving business in Texas.