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What are the steps I need to follow to form a Limited Liability Company (LLC) in Texas?

Picture of Chris Battis By   ·  1 minute read

To form a Limited Liability Company (LLC) in Texas, follow these steps:

  1. Choose a name for your LLC: The name must include the words "Limited Liability Company," or an abbreviation such as "LLC." The name must not be identical or too similar to the name of an existing LLC or corporation in Texas.
  2. File the Certificate of Formation with the Texas Secretary of State: This document formally creates your LLC and includes important information such as the LLC's name and address, the name and address of the LLC's registered agent, and the purpose of the LLC. The filing fee is $300.
  3. Obtain any required licenses and permits: Depending on the nature of your business, you may need to obtain federal, state, or local licenses or permits before you can begin operating your LLC.
  4. Create an Operating Agreement: Although an Operating Agreement is not required by Texas law, it is highly recommended. This document outlines the ownership and management structure of the LLC, how profits and losses will be allocated, and how important decisions will be made. It also helps protect the limited liability status of the LLC.
  5. Obtain an EIN (Employee Identification Number): This is a unique number assigned by the IRS that identifies your LLC for tax purposes. You can obtain an EIN online through the IRS website.
  6. Open a bank account for your LLC: This will help keep your personal finances separate from your business finances and make it easier to track income and expenses.
  7. Comply with ongoing requirements: After your LLC is formed, you must file an annual report with the Texas Secretary of State and pay an annual fee. You must also maintain accurate records and comply with any applicable state and federal tax requirements.

There are some potential limitations or exceptions to this advice that may depend on the specific details of your situation. For example, certain types of businesses, such as banks and insurance companies, may be subject to additional regulations and requirements. It is always a good idea to consult with a licensed attorney if you have any questions or concerns about forming an LLC in Texas.