How to form an LLC in Texas?
Below are list of steps to form an LLC in Texas.
- Name availability of your LLC: As per State of Texas Laws, the LLC must contain the words “LLC”, “Limited Liability Company” or “Limited company”. They may be abbreviated as “LTD”. We highly recommend that you pick at least 3 variations of names in the order of your preference.
- The secretary of state website has most frequently asked questions https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml
- Phone numbers to contact the Corporations section of the Secretary of the state is below http://www.sos.state.tx.us/corp/contact.shtml
- Choose a registered agent: A registered agent can be an individual or a company who will receive legal papers on the LLC’s behalf. They are also listed on the state website as public information. The registered agent should be a resident in Texas. The LLC cannot serve as its own registered agent. The owner or shareholder can be a registered agent.
- File a certificate of formation: Form 205 is the form that is required to be completed with the Secretary of state for the formation of the LLC. The filing fees are $300.
- Create an operating agreement: An operating agreement is an internal document that defines the internal governing rules and duties of the officers that is required for the company administration. It is not required for an LLC to create an operating agreement and file with the state but is highly recommended.
- Register an EIN: EIN refers to employer identification number. It is a unique identifier required for a business entity. An EIN is required for tax purposes. Bank will also require you to provide copy of your certificate of formation and your EIN letter. You can apply for an EIN by clicking on this link. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Open a bank account: Most banks will ask for a copy of your certificate of formation and the EIN letter.
What happens next?
- You will receive an official letter from state accepting your LLC application.
- You will receive your Texas Franchise tax letter and ID. Store this carefully as you will require this at the time of annual tax filing.
Your LLC is now ready to start doing business in Texas.
Require help with creating your Texas LLC, contact us via web form or call us @ 972 372 9710. We will be happy to help!
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