Should you be wanting to shield your company plus work with greater freedom, establishing an LLC in Texas is a wise decision. The process isn’t as complicated as it look, but you’ll need to complete a small important procedures to keep things compliant and smooth. From choosing your company’s name to filing the right paperwork, each procedure has a important role—so prior to you begin, there’s something you should consider first.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a good choice. While it’s not overly complex, you should follow important actions to stay within the law and run smoothly. Beginning with choosing your business name to submitting forms, each action is important—here’s what to follow first.
Naming Your Texas Business
Prior to filing, you must pick a unique name that meets Texas state rules.
Start by the online database of the Texas Secretary of State to check name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
Stay away from words that could be confused with government departments such as “bank” or “treasury.”
Avoid using prohibited words unless you have specific authorization.
After choosing your name, consider reserving it to keep it while you complete your formation documents.
Choosing Your Registered Agent
Every Texas LLCs are required to name a registered agent to receive legal documents and official notices on behalf of the business.
The representative must have a physical address in Texas—P.O. boxes are not accepted.
You can serve as your own registered agent, use a professional service, or designate someone you trust.
Make sure your the person or service is dependable during the normal working hours to accept attachments and notices. Dependability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To officially form your Texas LLC, file the Certificate of Formation with the Texas Secretary of State.
You can do this via the SOSDirect portal or by mail.
This document requires your LLC’s name, address, agent details, and structure of management.
Double-check all details carefully; errors can cause delays.
Filing fee is $300, pay by credit card or mail.
After approved, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Create an Operating Agreement
Even though Texas doesn't require an LLC to here have an operating agreement, this document is a wise move to set management roles, profit sharing, and responsibilities.
It also aids in avoiding disputes among members and clarifies procedures for matters like voting and management.
Even if you’re a single-member LLC, drafting an operating agreement provides professionalism and additional legal protection.
You may use a sample or write your own tailored document, and all members should sign it to confirm each member’s roles.
Obtain an EIN and Meet Additional State Requirements
After filing your LLC, you need to obtain an Employer Identification Number from the IRS—this is free and needed for tax purposes, especially you don’t plan to hire employees.
Review whether yourindustry needs additional licenses or permits, based on business activities.
Remember to, file annual Texas Franchise Tax Public Information Report to maintain your LLC’s compliance and prevent penalties.
Summary
Starting your Texas LLC is easy 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 federal requirements like annual reports and licenses to maintain a compliant, thriving business in Texas.