If you're wanting to protect your company plus run with increased freedom, forming an LLC in Texas is a smart move. The process isn’t as complicated as it might seem, but you’ll need to follow a few crucial procedures to stay compliant and smooth. Beginning with picking a name to filing the right paperwork, each procedure has a important role—so prior to 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 relatively simple, you must follow essential steps and stay in compliance and run smoothly. From selecting a name to submitting forms, each step becomes crucial—here’s what to follow first.
Naming Your Texas Business
Prior to filing, you must choose a unique name that meets Texas state regulations.
Start by 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.”
Stay away from words that might suggest government agencies such as “bank” or “treasury.”
Don’t using prohibited words unless you have 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 receive legal documents and official notices on behalf of the business.
The agent must have a physical address in Texas—P.O. boxes won’t do.
It’s possible to act as your own agent, hire a professional service, or designate someone you trust.
Ensure your agent is reachable during business hours to accept attachments and notices. Reliability is key to staying compliant.
File the Certificate of Formation
To officially form 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 LLC’s name, main location, agent details, and structure of management.
Review all details carefully; mistakes can cause processing issues.
Filing fee is $300, payable by credit card or online payment methods.
Once processed, this filing establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Create an Operating Agreement
Even though Texas not required an LLC to have an operating agreement, it’s highly recommended to outline ownership roles, profit sharing, and responsibilities.
It also helps in preventing disputes among members and sets procedures for matters like voting and more info management.
Even if you’re a single-member LLC, drafting an operating agreement adds professionalism and assets safeguard.
Download a template or write your own tailored document, and all members endorse it to confirm each member’s roles.
Post-Formation Legal Steps in Texas
Next filing your LLC, you need to obtain an EIN from the IRS—this is free and needed for tax purposes, especially you don’t plan to hire employees.
Check whether yourbusiness needs additional licenses or permits, based on your activities.
Also, file annual Texas Franchise Tax Public Information Report to maintain your LLC’s good standing and avoid penalties.
Final Tips
Starting your Texas LLC is simple by following these steps: Pick a unique name, designate a reliable registered agent, file 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.