If you’re looking to safeguard your business while work with more freedom, forming an LLC in the state of Texas is a smart choice. The process isn’t as difficult as it look, but you’ll need to adhere to a some key procedures to keep things compliant and smooth. From choosing your company’s name to filing documents, each step plays a important function—so prior to you start, there’s a key factor to keep in mind.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a smart choice. While it’s manageable, you need to complete key steps and stay in the law and operate efficiently. Starting from choosing your business name to submitting forms, each step is important—here’s what to do first.
Selecting a Name for Your Texas LLC
Before official registration, it’s necessary to choose a available name that complies with Texas state rules.
Start by the online database of the Texas Secretary of State to verify name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”
Avoid words that could be confused with government agencies such as “bank” or “treasury.”
Don’t using prohibited words unless you have specific permission.
Once choosing your name, consider reserving it to keep it while you complete your formation documents.
Designating a Registered Agent in Texas
All Texas LLCs are required to appoint a website registered agent to accept legal documents and official notices on behalf of the business.
The agent must have a physical address in Texas—P.O. boxes are not accepted.
You can serve as your own registered agent, use a paid service, or designate someone you trust.
Ensure your agent is reachable during business hours to accept attachments and notices. Reliability is key to staying compliant.
File the Certificate of Formation
To legally form your Texas LLC, submit the Certificate of Formation with the Texas Secretary of State.
You can do this via the SOSDirect portal or send a paper form.
The form asks for your business’s name, main location, registered agent info, and structure of management.
Review all information carefully; mistakes can cause processing issues.
The $300, pay by credit card or mail.
Once processed, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.
Establish Rules for Your LLC
Though Texas doesn't require an LLC to have an operating agreement, this document is highly recommended to set management roles, profit sharing, and responsibilities.
It also aids in preventing disputes among members and sets procedures for matters like voting and management.
Even if you’re a single-member LLC, drafting an operating agreement provides professionalism and assets safeguard.
Download a template 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
Next forming your LLC, you need to obtain an Employer Identification Number from the IRS—this is cost-free and needed for tax purposes, especially you don’t plan to hire employees.
Review whether yourindustry needs additional licenses or permits, based on your activities.
Remember to, submit mandatory Texas Franchise Tax Public Information Report to keep your LLC’s good standing and avoid penalties.
Final Tips
Forming your Texas LLC is easy by following these steps: Pick a unique name, designate a reliable registered agent, submit formation documents, write an operating agreement, and obtain your EIN. Stay up with ongoing state requirements like annual reports and licenses to keep a compliant, thriving business in Texas.