How to form an LLC in Texas.
If you are interested in starting an LLC in the Lone Star State,
you are not alone.
Texas has one of the highest rates of
newly formed LLC's in the country.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own
Limited Liability Company in the state of Texas.
There are two ways to form an LLC in Texas.
You can form one yourself
or you can hire a service to do it for you.
Let's start by looking at the five basic requirements
to form an LLC in Texas on your own.
Name Your LLC
You'll need to choose a company name that complies with Texas naming requirements
and do a name search on the Texas Controller of Public Accounts website
to make sure the name isn't already taken.
You should go ahead and register the web domain
for your business website and email as well.
Two: Choose a Registered Agent
Texas requires the you nominate a registered agent
who then must consent to appointment in written or electronic form
you can get a consent form 401 - A
at the Texas Secretary of State website but it does not need to be filed.
The registered agent can be an individual within the company including yourself
or you can hire professional service authorized to do business in Texas.
Three: File The Certificate of Formation.
To register your Texas LLC you will need to file
the Certificate of Formation with the Secretary of State.
This can be done online or by mail and will cost $300.
You will need to state whether your LLC will be member-managed or manager-managed.
Member managed means all members of the LLC manage the company.
This is good for small organizations where everyone is involved in day-to-day operations.
The second option is manager managed,
where individuals are appointed to manage the LLC.
This is appropriate for large organizations
where not everyone is involved in the day-to-day affairs of the business
Four: Create an Operating Agreement
You should also create an operating agreement
to establish ownership terms and member roles.
This is an internal document for reference
and does not need to be filed with the state of Texas.
This foundational document is the core of your LLC
and will help you maintain your organization
as well as further establish your LLC as a separate legal entity.
Five: Obtain an EIN
Lastly, you'll need to get an Employer Identification Number
or EIN from the IRS.
Also known as a Federal Tax Identification number
your EIN is like a Social Security Number for your LLC
and is important for taxes and banking.
EIN's are free of charge and can be obtained from the IRS
online or through the mail.
And with that you have formed a Texas LLC on your own.
Option Two: Hire a Professional Service.
the second way to create a Texas LLC is
to hire professional service to create your LLC for you.
Hiring a professional service to file your forms
and act as your registered agent for the LLC
will cost you an additional $50 to $150.
However, there are several benefits to working with a pro.
A hired registered agent helps with getting your reports filed on time,
helps you stay organized by keeping your business mail separate,
and is available at all regular business hours to accept official mail
and legal papers on your LLC's behalf.
A final and important additional benefit of using a service is privacy.
A professional service will provide a level of privacy
by withholding your personal name and home address from the LLC's contact information.
There are many reasons you might not want your personal information
easily accessible and associated with your busines.
Hiring a professional LLC formation service is an easy way to accomplish this.
Now that you have seen the different requirements
and ways you can form an LLC in Texas,
Visit our site and take some time to research your options
and establish a solid foundation for your business activities.
Click on the links in the description below.
to research the top 5 professional formation services
or get more information on how to form a Texas LLC on your own
We offer a host of free templates and tools
to help accelerate your small business
from operating agreements to business plans all free of charge
Visit us at howtostartanLLC.com