If you’re a Texas business owner looking to create an LLC, then you’ve come to the right place. Forming an LLC can be a complex process involving both state regulations and legal paperwork; however, with some careful guidance from an experienced business lawyer or accountant, it won’t feel overwhelming or confusing.
In this blog post, we’ll provide step-by-step instructions on how to form your LLC in Texas – including helpful tips on filing fees and tax requirements – so that all of the necessary steps for forming your company are taken care of correctly. Get ready to start down the path to success!
How to Get an LLC In Texas
Whether you are starting an LLC in Texas, or trying to get your LLC Online, deciding which formal entity is right for your company when you are starting a business in Texas is not always easy.
Texas LLC Application
Many entrepreneurs choose LLCs as business entities because they offer a number of protections of a traditional corporation and are also as flexible as partnerships. For example, an LLC can protect your personal assets and bank accounts when your business is facing a lawsuit or is in debt. Another advantage of LLCs is that they do not require complex filing and reporting like normal corporations. Consider consulting an attorney before you choose the right entity for your business.
LLC in Texas Cost & Fees
- Registered Agent Cost – $50 to $500 per year
- Secretary of State Certificate of Formation Filing Fee – approx. $300 filing fee
- Fee for certified copy of Certificate of Formation – approx. $30
- Fee for Certificate of Status – approx. $5
- Application for Reservation of Renewal of Reservation of Entity Name – approx $40
- Drafting LLC Operating Agreement – Cost varies
- LLC Lawyer Fees – Cost varies
The dollar amounts above are subject to change and should not be relied upon. Contact an attorney in your specific jurisdiction to determine the exact cost of forming an LLC in Texas. Call our office now to speak to a Texas business lawyer and discuss the costs associated with forming an LLC in Texas (832) 509-0445.
Tx Attorney | Create an LLC in Texas
Our law firm can help you register an LLC in Texas. There is no law requiring you to hire an attorney when you are forming an LLC, but an attorney can help you ensure that you comply with the law when you are filing certain paperwork in order to establish an LLC. In Texas, you are required by law to file certain paperwork with the Texas Secretary of State if you want to create an LLC. A business lawyer can also help you:
- Complete the certificate of formation that you need to file with the SOS
- Select your designated registered agent
- Help you determine whether a business name is available
- Register the final business name
You have to select the right designated registered agent because this agent is the party who will accept SOS communications, service of process, and other important documents on behalf of the business. A registered agent should be an individual that is a Texas resident or a business entity that is authorized to do business in Texas. The registered agent is required to have a physical street address in Texas.
Houston LLC Lawyer
Establishing An Operating Agreement When Forming An LLC
You must establish an operating agreement when forming an LLC in Texas. An LLC’s operating agreement is a document that outlines how your LLC will be organized and defines the responsibly members of the LLC will have toward each other and the business or company. The key elements that should be in your LLC operating agreement include:
- The purpose of the business
- Formation details of the company
- Name and Texas address of the registered agent
- Process for admitting members
- Names of all members and managers
- Location of the company or business
Without this agreement an LLC can lose its status and expose the personal assets of the owners and members to lawsuits against the company.
Why Should You Consider Starting An LLC?
An LLC comes with a number of benefits that are not available to regular corporations, sole proprietorships or partnerships. Some of the benefits of starting an LLC include:
- An LLC creates a legal distinction between you and your business which means that your personal assets or property will not be at risk if someone sues your business
- The number of formal requirements for forming and maintaining an LLC are fewer than those for forming entities such as corporations
- Forming an LLC gives you the option whether to use pay-through taxes or elect to pay taxes as a corporation
- The restrictions for forming an LLC are fewer and easier to meet compared to restrictions for forming corporations
LLC Formation Attorney Near Me
You may also be interested in…
- Reviewing A Contract
- How to Check LLC Name Availability In Texas
- Are Verbal Agreements Binding in Texas?
Texas LLC Operating Agreements
Checking LLC Name Availability
LLC Formation FAQ
How much does it cost to start an LLC in Houston or Texas?
Costs associated with starting an LLC range from $50 filing fees, to $300 Secretary of State fees, and can also include hourly attorneys fees or a flat fee or lump sum for attorneys fees. Call a Texas business lawyer at (832) 509-0445 for more info.
Will an LLC reduce my Taxes?
LLCs in Texas feature pass through taxation. Typically the LLC Agreement is in place to protect from liability, and then you can elect to have the LLC taxed as an S-corp. Overall, the taxation savings will depend on how you elect for the LLC to be taxed, but there are definitely opportunities for tax savings depending on how you choose for the LLC to be taxed.
How long does it take to form an LLC in Texas?
The length of time will vary but we have seen it done in a matter of days, and sometimes it can take longer. It is not uncommon for the whole process to be completed in under 30 to 45 days. Keep in mind that an attorney can help this process move faster, but we will also be dealing with the Secretary of State and certain other government bodies.
Do I need to start an LLC or Corporation?
You can operate your business as a sole proprietorship, although you may be shielded from personal liability if you operate under one of Texas' business entities like an LLC, Corporation, or some other type of limited liability business entity. A business lawyer and tax professional can help you choose the best entity to structure your business under. Give us a call for a quick consultation.
