If you are planning on starting a business in Texas, there are certain requirements that are necessary in order to legally form an LLC. These guidelines will help ensure that you run your business in an orderly manner and comply with all laws and regulations.
Each state has certain requirements, and Texas is no exception. There are many resources that can be used in order to successfully form an LLC in Texas.
Resources such as government agencies and other reliable websites will be invaluable when forming your company.
Even though the process may seem daunting at first, with the right resources at your disposal, you will never have to worry about being penalized for not meeting these requirements. has its own set of rules, so you will have to be sure to follow the guidelines established in the state of Texas.
Steps to Start an LLC in Texas
1. Choose a Name
Choosing a name is the first step in how to start an LLC in Texas. You can register an LLC under your own name or any business name you want to use. It is important that you are aware of state restrictions for naming companies as some states do not allow names that include certain words such as “trust” or “bank” among others.
It is best to check the government’s website first in order to determine which names are allowed. The state will have a list of names that can be used by different types of businesses. If a name has been approved for use in the past, there is a good chance that you can use it as well.
2. Decide on a Registered Agent
In order to officially establish your business in Texas, you need to name a registered agent and file the appropriate paperwork with the state. Your registered agent is an individual or entity that can receive notices, summons, and complaints on behalf of your business if it has ever been involved in legal issues.
The registered agent should be someone who is trustworthy and knowledgeable about the laws and regulations of the state of Texas. Some states, such as Texas, require you to use a particular type of name for your registered Agent, but this should never be an issue when you are forming an LLC in Texas. If you run into any problems when choosing your Registered Agent, it may be best to consult with a lawyer or business specialist to help you find the right person.
3. File an LLC Formation
To officially establish your LLC in Texas, you will have to file the proper paperwork with the state. To do this, contact a state agency that issues LLC formation documents, such as the Texas Secretary of State. You will then be required to submit certain paperwork to initiate the process of forming your LLC.
These include Articles of Incorporation or Memorandum for Registered Agents, which can be submitted by mail or in person. This document will serve as a contract between you and the agency and will clearly state the terms of your agreement. Another item you need to file is a Public Information Filing, which can also be completed by mail or in person.
4. Draft an Operating Agreement
When forming any type of business in Texas, it is highly recommended that you draft a written operating agreement. An operating agreement should be created after you have officially established your LLC in Texas but before it begins operations. It is a document that clearly outlines the different roles, duties, and responsibilities of the members of an LLC.
This will ensure that there are no disputes between the company’s members and that they are all working as a cohesive unit. A written operating agreement can be drafted at any time after you have formed your LLC but it is important to remember that it must be done before operations begin.
Doing this will ensure that your company is not found to be operating without one, which could result in serious consequences for the business and its members.
5. Apply for EIN
The next step you need to take in how to start an LLC in Texas is applying for an Employer Identification Number (EIN) and registering as a business with the IRS. This is also known as paying federal employment tax and reporting. The EIN is used as a distinct identifier to identify your business with the IRS. You will need to continue using this number throughout your company’s lifetime.
Once your LLC has officially been formed in Texas, you will need to file a tax return every year as well. In addition, these returns must be filed in order to receive an EIN from the IRS. This is especially important if you are expecting a large profit during the year since you may have to pay federal income tax on this amount.
In conclusion, how to start an LLC in Texas does require some effort and time to be completed properly. The process is fairly straightforward; however, it is best to consult with a law office or business consultant if you run into any problems. In Texas, there are certain requirements that must be met in order to form an LLC and they can vary from state to state. These guidelines will help ensure that you establish your company legally and operate according to the regulations set forth by each state.