If you’re aiming to shield your company plus work with more flexibility and adaptability, forming an LLC in the state of Texas is a wise choice. The procedure isn’t as difficult as it might seem, but you’ll need to follow a some key actions to keep things compliant and smooth. Starting with selecting your business name to submitting the necessary forms, each action serves a important role—so prior to you start, there’s something you should consider first.
Want to protect your business and gain flexibility? Forming an LLC in Texas is a wise choice. While it’s manageable, you must complete important actions to stay within compliance and run smoothly. Starting from choosing your business name to filing paperwork, each step is important—here’s what to follow initially.
Selecting a Name for Your Texas LLC
Before you register, you must select a unique name that meets Texas state regulations.
Use 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 might suggest government departments such as “bank” or “treasury.”
Avoid using restricted words unless special permission.
Once choosing your name, consider holding it to keep it while you prepare your formation documents.
Designating a Registered Agent in Texas
All Texas LLCs are required to appoint a registered agent to accept legal documents and official notices on behalf of the business.
Your agent must have a physical address in Texas—P.O. boxes are not accepted.
You can act as your own agent, use a paid service, or appoint someone you trust.
Make sure your agent is reachable during business hours to receive attachments and notices. Dependability is key to staying compliant.
Submitting Your Texas Certificate of Formation
To legally form your Texas LLC, file the Certificate of Formation click here 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, address, agent details, and management structure.
Double-check all information carefully; mistakes can cause delays.
Filing fee is $300, payable by check or mail.
Once processed, this filing forms your LLC in Texas, giving you official recognition and the ability to operate legally.
Draft Your LLC Operating Agreement
Though Texas doesn't require an LLC to have an operating agreement, this document is highly recommended to set ownership 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, creating an operating agreement adds legitimacy and assets safeguard.
Download a template or write your own tailored document, and everyone should sign it to confirm each member’s roles.
Post-Formation Legal Steps in Texas
After filing your LLC, you need to obtain an EIN from the IRS—this is cost-free and needed for financial purposes, even if you don’t plan to hire employees.
Check whether yourbusiness needs additional licenses or permits, based on your activities.
Also, file annual Texas Franchise Tax Public Information Report to maintain 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, file formation documents, draft 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.