What are the legal requirements for forming a Limited Liability Company (LLC) in Texas?

Legal requirements for forming a Limited Liability Company (LLC) in Texas:

To form a Limited Liability Company (LLC) in Texas, you must complete the following legal requirements:

1. Name your LLC: Choose a unique name for your LLC which complies with the Texas Secretary of State’s rules for LLC names. Your LLC’s name must not be the same as that of any other Texas-registered LLC, corporation, or other business entity. Once you have chosen a name, you may check if it is available by using the free online search tool on the Texas Secretary of State’s website.
2. Appoint a Registered Agent: Your LLC must appoint a Registered Agent, who is authorized to accept service of process and other legal documents on behalf of your LLC. The registered agent must have a physical address in Texas.
3. File Articles of Organization: Create your LLC’s Articles of Organization, and then file them with the Texas Secretary of State. The Articles of organization must include:
• Name and address of the LLC,
• Name and address of the LLC's registered agent,
• Purpose of the LLC,
• Whether the LLC is member-managed or manager-managed, and
• Name and address of the organizer.
4. Draft an Operating Agreement: Although not required by Texas LLC law, you should create an Operating Agreement. This document will outline your LLC's ownership structure, management, operations, and member contributions, among other important aspects of the LLC. An operating agreement helps to avoid any future disputes among members.
5. Secure any Required Permits or Licenses: Depending on the type of business you are establishing, you may need to secure permits or licenses from the Texas state agencies, such as the Texas Department of Licensing and Regulation and the Texas Alcoholic Beverage Commission, among others.
6. File Franchise Tax Reports: Texas LLCs are required to file franchise tax reports and pay franchise taxes annually.
7. Obtain any Required Industry-Specific Licenses: Depending on the nature of your business, you may need to obtain industry-specific licenses from the state.

In summary, the above are the legal requirements for forming a Limited Liability Company in Texas. However, since each situation is unique, it is recommended that you consult with an experienced Texas business attorney, who can advise you on any specific legal requirements for your particular LLC.