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What are the requirements for forming a limited liability company (LLC) in Texas?

Picture of Chris Battis By   ·  1 minute read

In Texas, the formation of a limited liability company (LLC) requires compliance with certain statutory requirements. These requirements include:

  1. Choosing a name: The LLC must have a unique name that includes the words "Limited Liability Company" or the abbreviation "LLC." The name also cannot be misleading, and it must not be the same as or confusingly similar to an existing business name in Texas.
  2. Filing a Certificate of Formation with the Texas Secretary of State: The Certificate of Formation should include the LLC's name, the name and address of the registered agent, the purpose of the LLC, the duration of the LLC (perpetual or limited), and the names and addresses of the LLC's initial members.
  3. Designating a registered agent: The LLC must have a Texas registered agent who can accept legal documents on behalf of the company. The registered agent must have a physical address in Texas (not a P.O. box).
  4. Maintaining an Operating Agreement: Although Texas law does not require an Operating Agreement for LLCs, it is highly recommended to avoid disputes among members. An Operating Agreement outlines the internal management structure, profit allocation, and the roles and responsibilities of each member.
  5. Obtaining necessary licenses and permits: LLCs may need to obtain specific licenses and permits depending on their industry, such as professional licenses for doctors or lawyers, or permits for certain types of businesses.

Potential limitations or exceptions to the advice given may vary depending on the specific circumstances of the LLC. For example, if the LLC has foreign members, additional filings may be required with the Texas Secretary of State.

If further action is necessary, it is recommended that the LLC seek the advice of a licensed attorney experienced in Texas LLC formation.

In conclusion, forming an LLC in Texas requires compliance with statutory requirements, including selecting a unique name for the company, filing a Certificate of Formation with the Texas Secretary of State, designating a registered agent, maintaining an Operating Agreement, and obtaining necessary licenses and permits.