Should you be looking to shield your company plus run with increased freedom, forming an LLC in the state of Texas is a wise choice. The method isn’t as hard as it look, but you’ll need to complete a small key actions to keep things legal and effective. Beginning with choosing your company’s name to filing the right paperwork, each action serves a important function—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 decision. While it’s manageable, you need to follow essential steps and stay in the law and run smoothly. Starting from choosing your business name to filing paperwork, each action becomes important—here’s what to follow first.
Choose a Name for Your Texas LLC
Before official registration, you must select a unique name that complies with Texas state rules.
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.”
Avoid words that might suggest government departments such as “bank” or “treasury.”
Avoid using prohibited words unless special authorization.
After choosing your name, consider securing it to protect it while you prepare your formation documents.
Appoint a Registered Agent
Every Texas LLCs must appoint a registered agent to accept legal documents and official notices on behalf of the business.
The representative needs a real location in Texas—P.O. boxes won’t do.
You can act as your own agent, hire a paid service, or appoint someone you trust.
Make sure your the person or service is dependable during the normal working hours to receive attachments and notices. Dependability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To officially create your Texas LLC, submit the Form 205 with the Texas Secretary of State.
You may do this via the SOSDirect portal or by mail.
The form requires your business’s name, main location, agent details, and structure of management.
Double-check all details carefully; errors can cause processing issues.
The $300, payable by check or online payment methods.
Once processed, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Establish Rules for Your LLC
Even though Texas doesn't require an LLC to have an operating visit the website agreement, it’s a wise move to outline ownership 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, 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
After forming your LLC, you need to obtain an Employer Identification Number from the IRS—this is free and needed for financial purposes, even if you don’t plan to hire employees.
Check whether yourindustry needs state or local licenses or permits, based on your activities.
Remember to, submit mandatory Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and avoid penalties.
Summary
Starting your Texas LLC is manageable by following these steps: Choose a unique name, designate a reliable registered agent, file formation documents, write an operating agreement, and register your EIN. Stay up with ongoing state requirements like annual reports and licenses to maintain a compliant, thriving business in Texas.