Is It Easy To Set Up An LLC In Texas?

Setting up an LLC

LLCs in Texas are easy and cheap to form. As with other states, the State of Texas has some personal requirements. Interested parties must register with the Secretary of State by submitting the required forms, paying the required fees, and meeting all naming and creation requirements.

Overall, here are some of the Vital requirements for forming an LLC in Texas:

How to Set up an LLC in Texas

You can set up a Texas LLC (Limited Liability Company) by filing the Texas Creation Certificate with the Secretary of State. In Texas, the cost of forming an LLC is $300. 

To get started today, follow this free How to set up an LLC in Texas guide below:

Registration

Individuals who want to start an LLC at Texas must file a Certificate of Formation (Form 205) together with the Secretary of State.

The form must include pertinent information such as the name and address of the LLC, the title and address of the resident representative, a statement identifying the type of direction and from whom (i.e. member-managed or manager-managed), the name and address of the organizers, the purpose of which it was formed along with the dissolution date, if appropriate. Remember to include the filing fee. You may register online, by email or by facsimile.

Types And Fees

All LLCs are required to submit a completed Certificate of Formation, Type 205, together with the Texas Secretary of State, along with the filing fee. Payment could be made by personal check, money order, Lega lEase debit card or by credit card (American Express, Discover, MasterCard, or Visa.) All credit card payments are subject to a convenience fee of 2.7percent of their total costs charged.

Timeline

All documents and forms submitted for filing and processing are usually performed within three to five business days upon receipt of their papers. Processing services are available for an additional per-document or form fee and must be accompanied by a written request for expedited processing services.

The usual LLC naming requirements exist in Texas, such as making sure that the LLC’s name is distinguishable from other LLCs from the nation. The LLC name has to be approved by state agencies and has to consist of individual words to be eligible and be accepted by the Texas Secretary of State.

An LLC with more than one member is also strongly advised to have a limited liability operating agreement among its members.

To function as a registered representative, company, or the person must complete an endorsement of approval, Type 401-A, that filed with the Secretary of State and must be accepted by the registered broker.

Start A Texas LLC

It is essential to know what an LLC is and whether or not it is a viable business structure for your company before you start the registration process for a Texas LLC, so be sure to read up on the definition and benefits of an LLC.

Here are some ideas to help you put together what you need to get the Texas Secretary of State to start the registration process:

1. Decide On A Business Name 

You can choose any name as long as it ends with “Limited Liability Company” or any variant of its abbreviation — LLC or LLC. Some state agencies and departments must also approve the name.

2. Assign A Process Servicing Supervisor. Also Referred To As A Resident Director

To serve as a registered agent with the Secretary of State, you must submit approval of the appointment and consent, Form 401-A. The form must include the name of the LLC, a statement of the person designated to be a registered agent consenting to serve as such, the registered agent’s name and signature, and the date the agreement was executed.

3. Get an IRS Employers Identification Number (EIN) 

If there are two or more members in your LLC, the IRS will require your company to obtain an EIN for tax purposes.

4. Create An Agreement To Operate

If your LLC has more than one member, see to it that you have an operating agreement with a limited liability company.

5. Familiarise Yourself With Ongoing Legal Obligations Of The LLC

Texas franchise tax is limited to LLCs. The Texas Comptroller allows LLCs to file an initial franchise report in their first year with a public information report, and then each year afterward an annual franchise tax report with a comprehensive information report.