An LLC In Texas (2024 Guide)" width="100%" height="145px" />Natalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her profes.
Natalie Cusson Small Business WriterNatalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her profes.
Written By Natalie Cusson Small Business WriterNatalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her profes.
Natalie Cusson Small Business WriterNatalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her profes.
Small Business Writer Lauren Holznienkemper Deputy Editor, SMBLauren (Hansen) Holznienkemper is a staff writer and deputy editor for the small business vertical at Forbes Advisor, specializing in reviewing and testing HR, payroll and recruiting solutions for small businesses. Using research and writing skills f.
Lauren Holznienkemper Deputy Editor, SMBLauren (Hansen) Holznienkemper is a staff writer and deputy editor for the small business vertical at Forbes Advisor, specializing in reviewing and testing HR, payroll and recruiting solutions for small businesses. Using research and writing skills f.
Written By Lauren Holznienkemper Deputy Editor, SMBLauren (Hansen) Holznienkemper is a staff writer and deputy editor for the small business vertical at Forbes Advisor, specializing in reviewing and testing HR, payroll and recruiting solutions for small businesses. Using research and writing skills f.
Lauren Holznienkemper Deputy Editor, SMBLauren (Hansen) Holznienkemper is a staff writer and deputy editor for the small business vertical at Forbes Advisor, specializing in reviewing and testing HR, payroll and recruiting solutions for small businesses. Using research and writing skills f.
Deputy Editor, SMB Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Brette Sember, J.D. contributorBrette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.
Updated: Aug 5, 2024, 5:13am
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An LLC In Texas (2024 Guide)" width="100%" height="145px" />
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If you’re wondering how to start an LLC in Texas, it’s important to be aware of the specific steps and requirements unique to the state. In this comprehensive guide, we’ll walk you through how to start an LLC in Texas in just a few simple steps. Read on to learn about Texas LLC requirements, fees and how to register your new business.
It’s always a good idea to know the exact steps and requirements before filing your limited liability company (LLC). In Texas, as in every state, there are a few specific requirements you’ll need to have squared away before moving forward with the process.
Requirements for an LLC in Texas include:
It isn’t complicated to start an LLC in Texas. Follow these steps to get your company established and ready for business in the state.
You need to name your business. As already discussed, the name should include one of the following terms:
It should also be a unique name that passes the business entity search test on the Secretary of State’s website; you cannot form an LLC with the same name as an existing entity doing business in Texas. You may also want to weed out names that look or sound similar to an existing business’s name, especially if it’s operating in your industry or locality. Deceptively similar names can raise trademark issues. And competing with another company with the same name can be bad for business—it confuses consumers, which is never good.
Just as you must include certain terms in the name, you cannot include certain terms. Some of these include:
You may use terms such as bank, university, attorney or doctor as long as you meet the Texas State Government requirements for such entities. Fulfill those first before adding any of these terms to your LLC in Texas.
Buy a Domain Name (Optional) for Your LLC in Texas
It’s a good idea to consider an online presence for your business, as it allows you to have a website and email address associated with your LLC. This enhances your online visibility and makes it easier for potential customers to find you on the internet.
Try to choose a domain name that matches or comes close to your LLC’s name. After doing so, you’ll need to purchase your domain from a domain registrar. A domain registrar is a company that facilitates the process of registering and managing internet domain names. You can choose to buy a domain name from many of the best domain registrars on the market.
As you already know, a registered agent is required to open an LLC in Texas. This is the time to hire one. You will need a registered agent who has a physical address in the state of Texas. This person must be available at that address regularly during business hours to receive personal service of legal documents.
Who Can Be a Registered Agent in Texas?
An individual resident in Texas, or an organization that is authorized to do business in Texas with a business office located at the same address as the entity’s registered office, can serve as the registered agent. In addition, an officer, owner, employee, friend or family member may also serve as a registered agent as long as they are a resident of Texas with a physical address in Texas.
Alternatively, a Registered Agent service provider can be hired to provide registered agent services. It’s important to note, the entity itself cannot serve as its own registered agent.
Below are links to the necessary forms for filing your LLC as well as the related filing fees.
Completed physical forms should be mailed in duplicate to PO Box 13697, Austin, Texas 78711-3697.
Additional costs related, filing fees or hiring a registered agent can range between $100 and $1,000. LLCs don’t file annual reports or pay reporting fees in Texas, but they are subject to a state franchise tax.
How To Complete the Certificate of Formation
When providing information about your LLC, you need to have the following details ready in order to complete the Certificate of Formation accurately.
After the filing has been submitted, you will receive a stamped and approved Certificate of Formation from the state of Texas (10-12 business days if filing online).
What if You Need To Amend Your Certificate of Formation?
The Certificate of Formation for an LLC only needs to be filed once during the initial formation process. However, if any of the information provided in the original Certificate of Formation needs to be updated, modified or expanded, the LLC is required to inform the state of Texas by filing a Certificate of Amendment.
To report these changes, you need to file a Certificate of Amendment with the Texas Secretary of State and pay the associated fee of $150. It is important to keep your Certificate of Formation up to date as it may impact your ability to obtain a Certificate of Fact-Status that is official evidence of your company’s ability to transact business in Texas. Failure to comply with state requirements and keep your LLC’s information current can greatly limit your LLC’s potential.
An EIN is free to obtain. It is a nine-digit number given to your Texas LLC by the IRS. This number serves as an identification number when getting bank accounts, credit accounts and filing taxes. It is an essential part of your Texas LLC.
Apply for the free EIN directly with the IRS. This application takes just a few minutes to complete and the EIN is issued immediately.
It’s worth noting that your LLC only needs an EIN if you:
Moreover, if your LLC is involved with any of the following types of organizations, you’ll need to get an EIN:
Every Texas LLC should have an operating agreement that outlines the following:
While this is an internal document, it is an important one to running the business. The operating agreement will outline things so that members and managers aren’t confused about who will do what in the business. Ultimately, it will help reduce conflict. Check out our Texas LLC Operating Agreement Template.
It costs $300 to file for a Texas LLC. If you use a service or attorney to file the forms, there may be additional fees associated with the formation of the company. Additionally, if you choose to hire a registered agent to maintain your business, that will add to your costs as well. If you’re looking for a registered agent to set up or maintain your LLC, check out our Best Registered Agent Services in Texas.
Single member and professional LLCs are subject to an annual state franchise tax, while sole proprietorships are not. There is additional information available through the official Texas Comptroller website as to how this tax is calculated. You can find related tax documents here.
Once you have all relevant paperwork filled out, you can:
Mistakes happen. If you file an LLC and later realize there are errors to correct, you will have to file a Certificate of Correction or Form 403 with the Texas Secretary of State.
When completing the document, carefully identify what you wish to correct. Please note that there’s a $15 filing fee and the process cannot be completed online currently.
