Many factors affect the cost of an LLC. Non-profit and for-profit organizations have different rates. You must also pay proper licenses, permits, or other documentation fees. You must understand the costs associated with starting and maintaining an LLC within Texas.

Texas Limited Liability Company

To form a limited liability company (LLC), you must file a Certificate Of Formation (Form 205) with the Texas Secretary of State.

You must do these things before you file your Certificate of Formation.

• Choose a name that suits your company and is not associated with any other entity.
• The Internal Revenue Service will issue a federal employee identification number, EIN
• Make a Texas LLC operating contract.
• You can decide whether you want to be your own registered agent or hire a service.
• For the LLC, open a bank account.
• Get the proper business license and permit.
• The Texas comptroller’s Office will accept a Texas sales tax permit.
• Find out the bylaws of your organization.
• You will need to decide whether or not the LLC will be managed jointly by members.

Filing fees

Most LLCs pay $300 to file a Certificate Of Formation. Non-profit organizations pay $25. Some services may require additional fees. These are just a few examples.

• $15 to process a certificate of withdrawal
• $15 to file an acceptance of appointment (Form 401A) and consent (Form 412-A).
• $25 rush orders

You can pay the state using money orders and personal checks. Any major credit card can be used to pay. For using a credit card, however, an additional 2.7 percent will be charged for filing fees.

Texas Annual Report Fee: No Charge

Texas requires LLCs to file annual reports with the Secretary of State.

This form can be submitted through the Texas Comptroller of Public Accounts website. This form is due May 15. Failure to file within the deadline period in Texas carries a $50 late penalty

Registered Agent Fee

You can be your registered agents in Texas, but a registered agent service will help you keep your company compliant and remind you of important filing deadlines to avoid paying late fees.

If you want to use an LLC service, visit our list of the best LLC services in Texas.

The Cost to Form a Foreign LLC in Texas

If your LLC is already registered in another state and you want to expand your business in Texas, you will need to register as a foreign LLC.

$750 is the cost to register a Texas foreign LLC. A Foreign Limited Liability Application can be filed in Texas to register a foreign LLC.

Texas LLC taxes

An LLC’s federal income tax requirements depend on whether it is a corporation, single member LLC, or limited liability partner.

Texas requires LLCs to pay a franchise fee. An LLC’s tax liability is determined by the total revenue of the business. Most businesses pay 0.75 percent tax. Wholesalers and retailers, however, pay 0.375 percent.

Since Texas doesn’t have a personal income tax, most LLCs don’t need to pay state income taxes. Even though LLCs with less than $1.13 million in gross revenue are not required to pay state income taxes, they still need to file a report. Texas has a 6.25 percent sales and uses tax. Many cities and municipalities add a 2 percent tax to their sales tax.

Each year, LLCs must submit a public and tax report to the Texas comptroller before May 15. This process can be complicated and requires the help of a certified public accountant. Before it can file the Texas franchise tax, the LLC must first file its federal taxes.

Late fees of $50 must be paid by LLCs if they miss the deadline for filing their franchise tax reports. An additional 5 percent must be paid if the LLC is more than 30 calendar days late and 10 percent if it is more than 30 calendar days late.

Texas Business Tips

If you’re looking to form an LLC in Texas, conducting a Texas LLC name search is crucial to ensure that your desired business name is available and compliant with the state’s requirements. Once you’ve confirmed name availability, you can proceed with the formation process and get your Texas business name registered.

Drafting a Texas LLC operating agreement is highly recommended to establish the internal rules and regulations of your LLC. You have the option to act as your own registered agent in Texas, handling the receipt of important legal and tax documents on behalf of your LLC.

The length of time to get an LLC in Texas may vary based on several factors, including the filing method and the workload of the Texas Secretary of State. It typically takes around 2-3 weeks for the formation documents to be processed and the LLC to be officially recognized. As part of the process, you will need to obtain an Employer Identification Number (EIN) for your TExas business from the Internal Revenue Service (IRS). This unique identifier is necessary for tax purposes, opening bank accounts, and hiring employees.

Several online platforms and registered agents offer comprehensive LLC services, including name availability searches, document preparation, and filing assistance. Researching and selecting the best LLC services and registered agents in Texas can help streamline the formation process and ensure compliance with state regulations. Additionally, depending on the nature of your business activities, you may need to acquire specific Texas business licenses at the state or local level. The cost to form an LLC in Texas typically includes filing fees and any additional expenses related to name reservation, certified copies, or expedited processing. The cost is the same even for a single-member LLC in Texas.

Lastly, if you ever decide to change your registered agent or dissolve and close your LLC in Texas, there are specific legal requirements and procedures that must be followed to formally terminate the entity.

What is the average time it takes to start an LLC?

After all paperwork has been completed, LLCs may file the Certificate Of Formation via the Texas Secretary of State’s website. You will receive an email confirmation that your LLC was formed when you submit your online application. This usually takes between 24 and 48 hours. This process can take between two and five days via the mail.

You can also file your paperwork in person at the Secretary-of-State building in Austin for faster service. The Secretary of State building in Austin can confirm that your LLC is formed. You can also have confirmation by mail.

Is a Texas LLC required to obtain a business license?

Although Texas does not have a state-level business license, it is important to be aware of small business licenses that may be available for your industry. Certain professions require occupational licenses. The following information must be included when applying for a business license:

• Tax ID number
• Information about insurance
• Articles of organization or incorporation
• Your mission

Many factors affect the cost of an LLC in Texas. It is important to know what you can expect. This will ensure that your application process goes smoothly.

FAQs

What Are the Costs Involved in the Formation of a Texas LLC?

The formation of an LLC in Texas comes with a variety of associated costs. The primary cost you should be aware of is the filing fee for the Certificate of Formation, which is $300 in Texas. This state fee can be paid online, through mail, or in person. Expedited filing is available for an additional charge.

You’ll also need a registered agent for your LLC for compliance purposes. Costs for this service can range widely, usually between $100 to $300 per year.

Texas imposes a franchise tax on LLCs, but the rate can vary depending on the revenue of your business entity. Additionally, you may need a business license, whose cost can range from $25 to $500, depending on the type of business and municipality.

Professional licensing may be required for certain professions, necessitating additional services, exams, and specialized training for applicants.

Optional services include name reservation, DBA (Doing Business As), and a Certificate of Good Standing, adding another potential $50 to $100 in government fees.

What Are the Ongoing Costs for Maintaining a Texas LLC?

Once you’ve completed the formation process, it’s crucial to understand the ongoing costs for maintaining your legal entity. Texas doesn’t require an annual report, but you will have annual renewal requirements like the franchise tax, which has its own due date. If missed, your LLC will become delinquent, incurring penalties and interest.

Taxation in Texas depends on your revenue, and you should always be aware of any state regulations that could affect your tax obligations.

Maintaining any professional licenses involves its own set of charges and compliance requirements, often requiring specialized training and exams.

Also, remember to renew your business license. Failing to do so can result in an unregistered status and possible penalties.

For those who have foreign LLCs, registering in Texas requires an extra form and filing fee of $750.

Last but not least, if you have employees, you must have workers’ compensation insurance. The rate for this will depend on various factors such as the number of employees and the nature of the work.

To give you a rundown, the cost of starting and maintaining an LLC in Texas involves several government fees and compliance mandates. Register in the appropriate jurisdiction and stay current with all due dates to avoid complications.

Summary: Texas Business License

We have created a guide to help new entrepreneurs navigate the complex and confusing steps involved in obtaining all the necessary licenses.

Is a Business License Required in Texas?

Texas does not require, nor issue, a generic business license at the state level. Although state regulatory agencies might issue licenses specific to certain types of professions or businesses, the only statewide licensing requirement for nearly all businesses is the “sales tax and use permit”, also known as a seller’s permit.

What are the requirements for a Texas business license?

Businesses in Texas must obtain a general license for business operations. However, each municipality may have different rules and restrictions. Dallas, for example, requires all businesses to obtain an “occupational tax certification” (business license). San Antonio does not require any businesses that sell alcoholic beverages.

Each city and county have its own license regulations. The state may regulate certain professions, but not others. We encourage business owners to do some research on what is required for their particular businesses. You can find information about the required statewide licenses at the Texas Business Permit Office’s Texas Business Licenses & Permits guide, or go directly to the Texas Department of Licensing and Regulation website.

Visit your local clerk’s office or city website to learn more about licensing.

Types of business licenses

Nearly all Texas businesses must obtain a permit or license to operate legally in Texas. Identifying the licenses you need to do business in your area or industry can be hard. You will need the appropriate licenses for your business type, whether you apply at the local, state, or federal levels.

Texas Local Business Licenses

A general business operating license is the most common type of license that you will need from your local government. However, some Texas cities might require licensing for certain types of businesses. Texas cities like Dallas require special licensing for certain business activities that are considered “vice” and “immoral,” such as entertainment centers, dance halls, or sexually explicit activities. Check with the local clerk to determine whether you require a general or special license for your business activities.

Additional local permits

You may need additional licenses or permits from the county or city where you are opening a business in Texas. You may need an occupancy permit, or you might have to apply for a home occupation license depending on the location of your business.

A building permit may be required by the county planning department if you plan to do any renovations or new construction. Some municipalities may require your business to obtain a sign permit before adding any outside advertising.

Additionally, your business may need to comply with specific requirements from the health department if it serves food or offers accommodations. In addition to local permits, you may also need a state permit to provide public accommodation or food service. These permits are not part of a business license. You should investigate what permits you might need before you open a business.

Texas Statewide Licenses

Texas-based companies must obtain a sales tax and use permit. This permit is sometimes called a seller’s license. Remote businesses selling products or services in Texas will also need a sales permit. For more information, visit the Texas Comptroller webpage.

Certain professions require licensing by the Texas Department of Licensing & Regulation. For more information about the special licenses and permits that your business might need, visit the Texas Department of Licensing & Regulation website.

Federal Permits and Licenses

Most small businesses do not require permits or licenses from the federal government. However, you might need a federal license if your business involves any federally regulated activities. The federal government controls the majority of businesses.

• Agriculture
• Serving, distribution, or importing alcohol
• Aviation
• Explosives, ammunition, and firearms
• Wildlife and fish
• Commercial fisheries
• Transport maritime
• Drilling and mining
• Nuclear energy
• Broadcasting on radio and television
• Transport

Texas Business Tips

When you’re looking to form an LLC in Texas, conducting a Texas LLC name search is crucial to ensure that your desired business name is available and compliant with the state’s requirements.

Once you’ve confirmed name availability, you can proceed with the formation process and get your Texas business name registered.

Drafting a Texas LLC operating agreement is highly recommended to establish the internal rules and regulations of your LLC. You have the option to act as your own registered agent in Texas, handling the receipt of important legal and tax documents on behalf of your LLC.

The length of time to get an LLC in Texas may vary based on several factors, including the filing method and the workload of the Texas Secretary of State. It typically takes around 2-3 weeks for the formation documents to be processed and the LLC to be officially recognized.

As part of the process, you will need to obtain an Employer Identification Number (EIN) for your TExas business from the Internal Revenue Service (IRS). This unique identifier is necessary for tax purposes, opening bank accounts, and hiring employees.

Several online platforms and registered agents offer comprehensive LLC services, including name availability searches, document preparation, and filing assistance. Researching and selecting the best LLC services and registered agents in Texas can help streamline the formation process and ensure compliance with state regulations.

Additionally, depending on the nature of your business activities, you may need to acquire specific Texas business licenses at the state or local level. The cost to form an LLC in Texas typically includes filing fees and any additional expenses related to name reservation, certified copies, or expedited processing. The cost is the same even for a single-member LLC in Texas.

Lastly, if you ever decide to change your registered agent or dissolve and close your LLC in Texas, there are specific legal requirements and procedures that must be followed to formally terminate the entity.

Most Frequently Asked Questions

What types of business licenses are available?

The term “Business license” can refer to various licenses and permits that businesses must obtain from the state, city, or federal governments before they can start operating. These are the most popular types of business licenses:

• A business operating license sometimes referred to as a business license
• A sales tax license allows businesses to sell products and services.
• If your business sells, distributes, or trades in alcohol, you will need a liquor license
• Licenses for specialties, such as plumbing, accounting, massage therapy, or legal counsel, are available.

Who is required to get Texas business licenses?

A Texas sales tax permit is required for any company that offers taxable products or services. Businesses in specific places or professions could also need additional unique licenses or permits.

What is the cost of a Texas business license?

A Texas business license may be required by your county or city. It can cost between $15 and a few hundred dollars. Businesses that are “vice” (e.g., amusement centers, dance halls, or other sexually-oriented businesses) will be charged significantly more, between $500 and $1,000. The fee will vary depending on where you live.

To sell online, do I need a Texas business license?

Even if your business is run from a coffee shop on a laptop, you still need to register it at a physical address. If your physical location is in Texas or if you sell products in Texas from outside of Texas, you will need a Texas sales and use tax permit. If your physical location falls within a specific county or city, you may need to apply for local business operating licenses.

Is it possible to run a business in the absence of registering it?

Instead of creating a corporation or LLC, you can operate a business as a sole proprietorship or general partnership. Sole proprietorships and partnerships will still need to register DBAs with government agencies and get business licenses. Find out more about the differences between a sole proprietorship and an LLC.

What is a sales-use tax permit?

Any business that sells or rents property, services, or tangible goods in Texas must have a sales and use tax permit. This license allows businesses the ability to sell their products or services in-store or online and collect the appropriate sales taxes on any taxable goods.

Although a sales and use tax permit is sometimes called a business license, there are other types of licenses that you might need.

Steps to Obtaining Your Texas Business License

Step 1. Name and Form Your Business

Before you can apply for any type of Texas business license, it is important to have all your affairs in order. Before you can proceed with any other steps, it is important that you have all your affairs in order before you apply for any Texas business license.

We offer many articles that will help you get started. These include guides on starting a business, setting up an LLC, and best LLC services. This information is required to apply for a business license.

• Name of the business
• An EIN (Employer Identification Number) or SSN (Single Owner Number) is required if you are a sole proprietor.
• Type of business entity (LLC, partnership, or corporation)
• An address for your business and a phone number
• A business plan which includes expected revenue and expenses
• Certificate of insurance (COI), for your business insurance policy

Step 2.  Apply for your Texas business license

Next, you will need to apply for your general operating license. The second step is to apply for your general business operating license. This type of license might not be required by your municipality. To find out, check with your county recorder or city clerk. Visit the Texas Municipal League website for a complete list of Texas municipalities and websites.

Step 3. Determine whether your business will require additional licenses or permits.

These licenses could be for the sale or operation of a coin-operated entertainment center or specialized licenses to sell alcoholic beverages. They may also include permits from the health department that allow the sale or offering of accommodation.

Step 4. Apply for Additional Permits and Licenses

If you rent or sell property, taxable goods, or services (often tangible), the fourth step is to apply online for the sales-use tax permit. To determine if any additional licenses are required in Texas, you can also check the Texas Business Licenses and Permits Guide. These licenses can be applied for at the Texas Department of Licensing and Regulation Website.

Step 5. Apply for Federal Licenses if Needed

The federal government doesn’t issue licenses for general business operations. However, depending on the industry of your business, you might need to apply for licenses at specific agencies. Many industries require permits, including agriculture, fishing, and firearms.

What is the Texas Business License Price?

The cost of a standard or specialized business operating license for your municipality can range from $15-30 to several hundred to several hundred.

Specialized licensing is required for amusement machines (arcades and billiards). A machine or pool table usually costs between $15 and $50 annually. Other businesses that are “vice”-based should expect to pay higher fees. A Dallas dance hall, for example, must pay almost $2,500 to get its first zoning survey done, and $526 per year for a license.

Texas Business License Renewal

There are many Texas municipalities and agencies that handle business licensing. However, most require that licenses be renewed annually or biennially. If you are unsure, contact the agency that issued the license.

Texas LLC Name Availability Search (Guide)

To look up an LLC name availability in the state of Texas, you can follow these steps:

1. Go to the Texas Taxable Entity Search or you can search the Texas Secretary of State’s website database tool, SOSDirect for $1.00 per search. SOSDirect is an online business service from the Texas Secretary of State.
2. Click on the “Business & Filings” tab in the top menu.
3. Select “Search Business Filings” from the dropdown menu.
4. Choose “Search by Name” or “Search by File Number” to enter the LLC’s name or file number.
5. Enter the LLC’s name or file number in the search field and click “Search.”
6. The search results will display the LLC’s name, status, and registered agent information.

Note that the search results will only show LLCs that are registered with the Texas Secretary of State. If the LLC is not registered or has not filed its required paperwork, it may not appear in the search results.

Texas Secretary of State | Contact Information

Mailing Address

Business & Commercial Section
Texas Secretary of State
P.O. Box 13697
Austin, TX 78711-3697

Physical Address

1019 Brazos St.
Austin, TX 78701

Hours: Monday–Friday, 8:00 a.m.–5:00 p.m.

Email: Corpinfo@sos.texas.gov

Phone: (512) 463-5555

What is a Texas Business Entity?

A Texas business entity refers to an organization that is formed and registered to conduct business in the state of Texas. As with other states, Texas recognizes several different types of business entities, each with its own set of rules, regulations, tax obligations, and liability structures.

These entities are governed by Texas state law and must be registered with the Texas Secretary of State’s office.

Here are some common types of business entities in Texas:

1. Sole Proprietorship: This is a business owned by a single individual. It’s the simplest form of business entity, but the owner is personally liable for all business debts and obligations.
2. Partnership: This includes general partnerships (GP), limited partnerships (LP), and limited liability partnerships (LLP). The liability and management structure differs between each type of partnership.
3. Corporation: This is a separate legal entity owned by shareholders. Corporations provide liability protection to its owners and can be either a for-profit corporation (like a C corporation or S corporation) or a nonprofit corporation.
4. Limited Liability Company (LLC): This is a hybrid structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
5. Professional entities: These include professional associations (PA), professional corporations (PC), professional limited liability companies (PLLC), and other entities designed for licensed professionals like doctors, lawyers, accountants, architects, etc.

Texas Secretary of State Business Entity Name Search

To form a business entity in Texas, you typically need to file the appropriate formation documents (like Articles of Incorporation for corporations or Certificate of Formation for LLCs) with the Texas Secretary of State and pay any associated filing fees.

Can I Reserve a Business Name Online?

Yes. You can file a name reservation through the Texas Secretary of State’s SOSDirect 24 hours a day, 7 days a week.

Texas Name Filings FAQs

Search Business Name Availability in Texas (Texas LLC Lookup Guide)

Choose a name for your business entity

Your business’s brand name will be part of its identity. It doesn’t make a difference if the business is an LLC/corporation, but a memorable name is what people will associate you with. Also, make sure your name is catchy and memorable.

How to find a great business name

It’s not hard to understand that you need a business name. The process of coming up with a name is quite different. This is where you should sit down and consider different naming options.

This is the most effective way to achieve this goal, though it will likely take some time.

Texas Naming Guidelines

1. Texas’s rules regarding business names

Before you pick a name for your business, read the Texas business naming rules. These rules are quite strict, and it is crucial to review them before making a list. Your Certificate of Formation with the Texas Secretary of State (SOS), can be denied if your proposed name does not conform to these rules.

The Rules

Texas has many rules for business naming. You can find them on the website Secretary of State. The following requirements must be met in general

• The business entity name must stand out from other names.
• The name does not have to imply affiliation with a government agency.
• The name cannot mean it will engage in illegal acts.
• If the name is to be used in a prohibited manner, such words as “university,” “bank”, or “bank”, it must comply with certain conditions.
• Names can not be grossly offensive.

A complete list can be found in Title I, Part 4 – Chapter 1979 – Subchapter C (“Entity Names”) of the Texas Administrative Code.

2. Perform a Texas business entity name availability search

Search Texas businesses: Search for LLC or corporation names. Texas has an easy way for you to do it on their website.

How to conduct a corporation lookup or LLC lookup

Texas LLC Name Search Link   https://mycpa.cpa.state.tx.us/coa/

To perform a Texas business name lookup, you must first go to the Texas Comptroller’s Website. Search for “taxable entity lookup” on the website. It will take you to the search engine that allows you to search for all taxable entities throughout Texas. This tool will help you determine if your desired business name is available.

This tool is free, and you don’t even need an account. Just enter your potential name into the “EntityName” box. This will let you see if there is an existing business that uses your name.

SOS Texas business search

Check LLC name availability. SOS is another option. TX has limited business search options. If you want extra assurance that your potential company name is available even though the search tool indicates it, contact the SOS via phone at (512), 463-5555.

Search business names. These are the two most effective ways to search Texas for businesses. Websites of the Secretary of State and agencies from other states (depending on which state they are) provide a business search tool. You might also want to explore other states.

Texas Name Search in Spanish of Other Languages

The Texas business name search is in English only, but you can use Google Translate, or a Chrome extension for name translations. You can also contact the Texas Secretary of State office by phone at (512), 463-5555 and request a Spanish speaking clerk for assistance.

3. Choose a domain

Next, pick a domain name closely matching your Texas business. You can now get a domain by performing a corporation/LLC lookup. It’s not necessary to have a domain address unless you intend to establish an online business. It doesn’t matter what; now is the time for domain names.

4. Texas Business Name Reservation

The last step is registering Texas business names with the Secretary of state. File Form 501 General Information (Application of Reservation or Renewal of Reservation of Entity Name) This form allows you to reserve a business name for a corporation, LLC, or other entity.

Fill out Form 501

The Instructions for Filling Form 501 Included are some helpful tips. The information section is short. The following information must be included:

• Name of the entity to be reserved
• Which type of entity do you want to form? LLC, corporation, etc.
• Your name and address
• Your signature

Your name will be held for 120 consecutive days.

Texas: You can get an assumed surname

Business entity. In addition to a business name, you can also obtain an assumed name. While your company name can be used to do business, an assumed or “doing Business as Name” name will allow you to use a different name.

Texas Business Tips

When you’re looking to form an LLC in Texas, conducting a Texas LLC name search is crucial to ensure that your desired business name is available and compliant with the state’s requirements.

Once you’ve confirmed name availability, you can proceed with the formation process and get your Texas business name registered.

Drafting a Texas LLC operating agreement is highly recommended to establish the internal rules and regulations of your LLC. You have the option to act as your own registered agent in Texas, handling the receipt of important legal and tax documents on behalf of your LLC.

The length of time to get an LLC in Texas may vary based on several factors, including the filing method and the workload of the Texas Secretary of State. It typically takes around 2-3 weeks for the formation documents to be processed and the LLC to be officially recognized.

As part of the process, you will need to obtain an Employer Identification Number (EIN) for your TExas business from the Internal Revenue Service (IRS). This unique identifier is necessary for tax purposes, opening bank accounts, and hiring employees.

Several online platforms and registered agents offer comprehensive LLC services, including name availability searches, document preparation, and filing assistance. Researching and selecting the best LLC services and registered agents in Texas can help streamline the formation process and ensure compliance with state regulations.

Additionally, depending on the nature of your business activities, you may need to acquire specific Texas business licenses at the state or local level. The cost to form an LLC in Texas typically includes filing fees and any additional expenses related to name reservation, certified copies, or expedited processing. The cost is the same even for a single-member LLC in Texas.

Lastly, if you ever decide to change your registered agent or dissolve and close your LLC in Texas, there are specific legal requirements and procedures that must be followed to formally terminate the entity.

Texas Business Entity Name Search FAQs

1. What is the purpose of a business entity name search in Texas? Conducting a business entity name search in Texas is essential to ensure the name you want for your business is not already in use or too similar to existing entity names. This is a crucial step in forming a new business, as Texas law requires each business entity to have a distinct name for legal and identification purposes.
2. How can I conduct a business entity name search in Texas? You can search for business entity names through the Texas Comptroller of Public Accounts website or the Texas Secretary of State’s SOSDirect website. These online databases allow you to search and verify if a business name is currently in use or has significant similarities to existing names.
3. Is there a fee associated with searching for a business name in Texas? Typically, there is no fee for conducting a basic name availability search through the Texas Secretary of State’s online resources. However, if you require more in-depth information or official documentation, there may be a fee for these services.
4. What should I do if the business name I want is already taken in Texas? If your desired business name is unavailable, you will need to modify it or choose a different name that is unique and compliant with Texas naming regulations. It’s beneficial to have alternative names in mind before starting the search process.
5. Can I reserve a business name in Texas before forming my entity? Yes, you can reserve a business name for a specific period (usually 120 days) by filing an application with the Texas Secretary of State and paying the applicable reservation fee. This reserves the name exclusively for your use during that period.
6. Are there any naming restrictions for businesses in Texas? Texas has specific guidelines for business names. For example, names must be distinguishable from existing entities and cannot imply association with government agencies. Certain words may require additional documentation or licenses to use (e.g., “bank,” “university”).
7. How can I ensure my chosen business name complies with Texas law? To ensure compliance, review the Texas business naming guidelines available on the Secretary of State’s website. It’s also advisable to consult with a legal professional, especially if your desired name includes words that might have regulatory restrictions.
8. What are the next steps after finding an available business name in Texas? Once you find an available name, you can reserve it if you’re not ready to form your business entity immediately. The next step is to formally register your business with the Texas Secretary of State by filing the necessary formation documents under the chosen name.
9. Can I use a ‘Doing Business As’ (DBA) name in Texas? Yes, you can operate under a DBA name in Texas. However, you must ensure that the DBA name is also unique and file a DBA registration with the county clerk’s office where your business is located.
10. How often is the Texas business name database updated? The Texas business name database is regularly updated, though the exact frequency can vary. For the most current information, it’s best to check directly with the Texas Secretary of State or the Comptroller’s office.

Texas LLC Name Search: Additional Steps and Considerations

1. Trademark Search

When searching for a business name, it’s important to note that availability doesn’t necessarily mean the name is free to use if it’s already a registered trademark.

To avoid potential complications down the line, it’s wise to conduct a thorough trademark search using the Trademark Electronic Search System before finalizing a business name.

2. Check if the Domain Name is Available

To check if a domain name is available, you can follow these steps:

1. Go to a domain registrar website, such as GoDaddy.com or Namecheap.com.
2. In the search bar on the homepage, type in the domain name you want to check.

Additionally, if you are considering registering a domain name for your business, make sure to also check for any existing trademarks that may conflict with your chosen domain name.

3. Check if Social Media Name is Available

Check if a social media name is available for your new business name.

4. Register Texas Business Entity

When you complete the required documents for filing a new business entity, you then register your business and business name with the state. The state of Texas will either approve your business name or reject it.

If you hire a good LLC service like Northwest Registered Agent, ZenBusiness or Bizee, these LLC services have business name tools available for you to do a quick search. I recommend using any of these 3 services to assist you with forming a new business. They can save you time and provide you with guidance through the formation process.

Additional Texas LLC Name Search – FAQs

How do I get an assumed name?

To register an assumed surname, you must file Form 503 General Information (Assumed Name Certificate) with the Secretary of State. This form can be found at the SOS’s website.

Why would I need an assumed identity?

An assumed name may be used if your current business name doesn’t reflect your new product launch. For opening a new shop, an assumed name can be used. Depending on the entity formed, there will be different reasons for an assumed name.

Can I renew the Texas business name reservation for my company?

Yes. It is possible to renew your business name reservation. Form 501 can be filed within the 30-day time period prior to the expiration of the reservation.

What is the best way to change my Texas business’s name?

For your business to change its name, you must file Form 424 – General Information – Certificate of Amendment with the Secretary. Be aware that the name you would like to change cannot already be used in another business. You will need to search for another LLC name or corporation. The state of Texas has a few options for doing this.

Can I change the business name online?

Yes. You can submit Form 424, online through the SOSDirect section of the Secretary o State’s website.

What business types are required to file an Assumed Name Certificate?

If you’re planning on doing business under an assumed identity, then the following entities should file an assumed names certificate:

• LLCs, including professional limited liability company (PLLC),
• Corporations (nonprofits, for-profits, and professionals)
• Limited liability partnerships (“LLPs”)
• Limited Partnerships (LPs).
• Professional associations
• Foreign filing entities

Can I name my LLC after myself?

Yes, your LLC can be named after you. However, this should be considered from a professional marketing and professional standpoint. Are you able to generate interest in the brand with your name? Is it catchy? If you want to do business as someone else, you can always get an assumed title.

How can I find an LLC in Texas?

Using the Texas database search, you can search for the business name, business entity number, or executive name. For a business entity to exist, all this information must be registered with the state.

How do I confirm that a Texas company is registered?

You can search for the company’s name, entity number, or executive name by searching the state. You can search by the name, entity number, or executive name if you don’t find it in Texas.

While there are free templates available online, we recommend getting an LLC operating agreement from a trusted source like Northwest Registered Agent, Incfile, or ZenBusiness. They can provide you with a free template.

Visit any of these LLC services for a free LLC operating agreement template

• Northwest Registered Agent
• Incfile
• ZenBusiness

Making a clear and thorough operating agreement today will help your company succeed down the road. Read on to learn what is covered in this document and how to construct one.

When you are ready to start forming your Texas LLC, you may want to consider a cheap LLC service in Texas to assist you with the formation process. These top-rated LLC services can also provide you with affordable registered agent services for your Texas LLC.

What is an LLC Operating Agreement?

An operating agreement is essential if you’re forming a Texas (LLC). This legal document offers information about the ownership and routine operations of your company as well as instructions for situations like the dissolution of the LLC.

An operating agreement is an internal document of the LLC. It is not legally required in Texas for LLC owners to file an operating agreement with the Secretary of State along with the Articles of Organization (the documentation required to formally incorporate an LLC).

An operational agreement is, however, officially recognized by Texas law, which defines it as “the written agreement which shall be entered into among all of the members as to the conduct of the business and affairs of a limited liability company.”

The state also advises that all LLC members sign into a written (rather than verbal) operating agreement. If you cover all the pertinent concerns, you may rest comfortably knowing that the state will respect your operating agreement.

Is an LLC Operating Agreement Needed in Texas?

Why You Should Have a Texas LLC Operating Agreement

Protect yourself from liability: An operating agreement aids in separating the members (owners) of an LLC from the corporate body. The operating agreement separates the members’ personal liabilities from the LLC’s obligation in the event that the company encounters legal issues, such as a lawsuit. In the event that the company entity is sued, your personal assets as a member, such as money and property, are safeguarded.

Put verbal agreements in writing: If you’re forming an LLC with partners, you’ve probably already spoken about the specifics of the company, like how much money each partner will put into it. It can be tempting to rely on verbal agreements since you trust your partners, but doing so is a bad idea. It is a fact that disagreements happen in business. In case of disagreements, having information like how much each partner owns in writing will be helpful.

Protection from the state: Without an operating agreement, your LLC will be subject to the “default rules” of Texas. This protects your agreement against interference from the state. An operating agreement safeguards you by preventing the state from literally interfering with your business.

Consider the division of earnings as an illustration. State law may require that profits be distributed equally among LLC owners when the LLC is dissolved. An operational agreement allows you to determine how profits are allocated in relation to the ownership share each owner has in the company.

Make the most of the flexibility an LLC provides: The most adaptable legal business entity you can create is probably an LLC. Less strict regulations apply to management, reporting, and taxes than, say, to a corporation. The operating agreement, which allows you to specify anything from members’ voting rights to what happens if a member wishes to quit the LLC and what processes are necessary to dissolve the LLC, is the key to this flexibility.

Legitimize your company: An operational agreement gives your company legitimacy by demonstrating to outsiders that it is being run ethically. Before they open a company bank account for you, for instance, the majority of banks will demand to see an operating agreement.

A serious angel investor will also request to see an operating agreement before investing in your company if you are looking for capital from private sources.

What Should My Texas LLC Operating Agreement Contain?

There won’t be any duplicate operating agreements. An operating agreement must address the particular needs that each firm will have given its uniqueness. However, any operating agreement in Texas must unquestionably have a few key elements. How to write a Texas operating agreement and what should be included in it is described in this section.

Source: From the ZenBusiness website, an LLC operating agreement should include:

1. LLC Name
2. Ownership
3. Management Structure
4. Duties of Members and Managers
5. Voting Rights and Responsibilities
6. Distributions
7. Holding Meetings
8. Buyout and Buy-Sell Rules
9. Succession Planning
10. Dissolution
11. Modifications to the Operating Agreement
12. Single-Member LLC Statue
13. Severability Provision

1. LLC Name

Indicate the company name exactly as it is written in the Texas Articles of Organization. This document is used to formally create your LLC and is filed with the Secretary of State in Texas. It is how the name appears in the official state registry and how the state would formally acknowledge it.

Use the full business name, including the words “Limited Liability Company” or an authorized abbreviation (“LLC,” “L.L.C.,” “L.C.,” or “LC”), and avoid using an acronym or nickname.

2. Ownership

Give a breakdown of the percentage of each owner’s ownership in addition to the full names of the members (owners). There are various methods for calculating purported “degrees of ownership.”

Many companies decide to connect ownership with capital investments made by each member. For instance, if you invest $1,000 in the business and your partner contributes $500, you would be entitled to two-thirds ownership as opposed to your partner’s one-third.

If your LLC has just one member, you will own the entire company.

3. Management and Organizational Structure

An LLC may be managed by its members or by its managers. Which management structure you intend to use must be stated in your Texas Articles of Organization. In a member-managed LLC, the owners—known as members—are in charge of managing day-to-day business operations. In an LLC that is managed by a manager, the owners delegate management of day-to-day activities to the manager.

The management structure and the methods for altering it should be outlined in your operating agreement.

4. Manager and Member Responsibilities

As part of their participation in the LLC, members, and management have a variety of responsibilities to undertake. Your operating agreement should specify the exact responsibilities and rights of management, including what they may and cannot do on the company’s behalf.

Even members who are not active in day-to-day operations must still perform obligations like attending scheduled member meetings and participating in votes as needed.

5. Voting Rights and Responsibilities

The ability to vote on significant business decisions, such as a prospective buyout or the addition of a new member, is often granted to LLC members. It should be stated in the operating agreement who has the right to vote on certain matters.

It is possible to distribute voting rights among members unevenly. The voting power may reflect this and give the two-thirds owner two votes and the one-third owner only one, for instance if one member owns two-thirds of the business and the other one-third.

6. Distribution and Allocations

The division of gains and losses among members is referred to as distributions. Profits may be allocated equally or in accordance with ownership stakes. It’s entirely up to you; however, as profit distribution may sometimes be a source of disagreement among partners, you must make sure it is specified in the operating agreement.

Include details about how and when profits will be transferred, such as to members’ bank accounts at the conclusion of the fiscal year. You might also wish to be aware that each member is liable for paying any necessary taxes on any earnings.

7. Holding Meetings

Like corporations, LLCs are not compelled by law to hold periodic shareholder meetings or similar events. Despite this, it makes sense to schedule monthly meetings for members and management to discuss company developments and future changes.

Include this commitment right away in the operating agreement. You won’t have to worry later about persuading resistant participants. Additionally, members who refuse to fulfill this commitment may be subject to a vote to remove them from the LLC.

8. Rules for Buyouts and Buy-Sells

As your company grows, you can welcome new members or lose long-time members who want to take advantage of other opportunities. Describe the requirements for adding a new member, such as the amount of capital investment required and who will vote to approve them.

Include specifics about what must be done when a member resigns, including what happens to their ownership stake. For instance, the operating agreement can state that the surviving members must be given the first opportunity to purchase the retiring member’s stock in the company.

9. Succession Planning

The term “succession planning” describes what happens if an LLC member passes away or retires. What happens to their ownership stake in the company should be specified in the operating agreement.

Can they give it to their own relatives or friends? Does a current member need to receive their share?

Members may alter their own estate planning records (such as a will) to comply with the operating agreement’s requirements once these recommendations have been made clear to them.

10. Dissolution

The LLC must be dissolved if its members decide they don’t just want to cease working for the company but also want to quit running it totally.

• What conditions must be met for the council to be dissolved?
• Do all members need to agree in order for this motion to pass?

Include a description of the formal procedures for closing the company in the operating agreement. This could entail actions like filing your final taxes and supplying the state with the required Articles of Dissolution.

11. Modifications to the Operating Agreement

Operating contracts are designed to be flexible. For instance, if a new member joins, the operating agreement must be updated to reflect their name as well as any capital contributions, responsibilities, and voting rights.

Include instructions on how to change the operating agreement, and who needs to approve this by voting or signing it. This will serve as your manual for any subsequent updates.

12. Single-Member LLC Statute

It could seem as though many of the aforementioned ideas don’t apply to you if your LLC only has one member. For instance, since you—the LLC’s single owner—will make all decisions, voting could seem unnecessary.

From a legal perspective, the operating agreement still has to specify this! Include a sentence in your operating agreement that states unequivocally that you are the LLC’s single owner, possessing 100% ownership rights, and that you have the power to act on behalf of the LLC without conducting votes or having meetings.

You risk trouble with third parties, such as lenders who provided you with a business loan, if you conduct certain acts without having this stated in an operating agreement.

13. Severability Provision

You may have seen similar legal language like this in other contracts. In essence, it says that if one provision of the operating agreement is declared unconstitutional, the remaining provisions remain legitimate. This makes sure that your operating agreement won’t be completely useless due to a single minor error.

Texas Operating Agreement FAQs

In Texas, is an LLC Operating Agreement required?

An operating agreement in Texas is strongly advised even though it is not legally necessary. Your operating agreement is an internal document, which means you’ll keep it on file with your own business documents.

This important legal instrument makes membership (ownership) and regular activities clear. In the event of liability difficulties, such as lawsuits, protecting members’ (owners’) personal assets by separating them from the corporate entity is important.

Where can I get an LLC Texas operating agreement?

Most LLC services provide a prepared template for you to draft your operating agreement. However, because every firm is unique, you should speak with a business lawyer to make sure your operating agreement covers all necessary details.

Is an Operating Agreement needed for a single-member Texas LLC?

Yes. The answers to membership and operational-related questions, which are frequent sources of disagreements between partners, are clarified by an operating agreement. As a single-member LLC, the operating agreement also limits your personal liability, defending you financially and personally in the event that the company encounters legal issues.

Am I allowed to draft my own LLC operating agreement in Texas?

Technically, this is allowed. With the use of ready-made templates, which offer the pertinent key points and employ necessary legal wording, you may build your own operating agreement for your Texas LLC. However, you should always have a local attorney evaluate the final document to make sure you haven’t overlooked anything that is particular to your state or business model.

Legally speaking, you are not required to hire a lawyer to draft your operating agreement. However, you should always have your operating agreement reviewed by a business lawyer who is knowledgeable about the legislation in your state. They can draw attention to particular problems unique to your company that isn’t covered by pre-existing templates.

They can also assist you with clauses that provide indemnification for members who might be named in disputes, arbitrations, or investigations as a result of their employment with the company.

References

Small Business Administration (Operating Agreements)
Texas Secretary of State
ZenBusiness

1. Choose and Register a Business Name:
   • Select a unique business name. If it’s different from your personal name, file an Assumed Name Certificate (DBA) with your county clerk’s office.
2. Obtain Required Licenses and Permits:
   • Depending on your type of business and location, acquire the necessary permits and licenses. Resources like the Texas Department of Licensing and Regulation can help identify what you need.
3. Open a Business Bank Account:
   • To keep personal and business finances separate, open a business bank account. This step aids in financial management and tax preparation.
4. Set Up Accounting and Understand Tax Obligations:
   • Implement an accounting system for tracking income, expenses, and taxes. Familiarize yourself with federal and Texas-specific tax requirements for sole proprietors.
5. Arrange for Business Insurance:
   • Assess your business risks and obtain appropriate insurance, such as general liability or professional liability insurance, to protect against potential liabilities.

These steps provide a basic framework for starting a sole proprietorship in Texas, covering key aspects like legal registration, financial setup, and risk management.

What is a Texas Sole Proprietorship?

A sole proprietorship is the simplest form of business entity, where the business is owned and run by an individual without any distinction between the business and the owner.

In Texas, this means you are personally responsible for all liabilities and debts of your business.

The simplicity of starting and managing a sole proprietorship makes it an attractive option for many entrepreneurs, especially for those venturing into small business, freelancing, or independent contracting.

Planning Your Texas Sole Proprietorship

The foundation of a successful business begins with a comprehensive business plan. This plan should detail your market research, business strategy, and financial projections.

It’s crucial to understand your customer base and market dynamics in Texas, which boasts a diverse economy ranging from technology to agriculture.

When choosing a business name, make sure it reflects your brand and is easily identifiable by your customers. In Texas, check the availability of your chosen name through the Texas Secretary of State’s Direct Search.

Legal Requirements and Registration

To operate under a name other than your own in Texas, you must file an Assumed Name Certificate, commonly known as a DBA (Doing Business As), with the county clerk in the county where your business is located. This process may vary slightly from county to county. You can find more information on the Texas Business and Commerce Code regarding assumed names.

Securing the necessary permits and licenses is crucial. These requirements depend on the type of business and its location. The Texas Department of Licensing and Regulation and Texas.gov Business Permits Office provide resources to help identify the specific licenses and permits needed for your business.

If you plan to operate a home-based business, it’s important to comply with local zoning laws. Check with your city or county government to ensure your business activities are permissible in your home.

Financial Setup for Your Business

Opening a separate business bank account is essential for managing your finances effectively. This separation simplifies tax preparation and improves financial organization. For accounting and bookkeeping, consider using small business software to track income, expenses, and potential tax deductions.

Understanding your tax obligations is paramount. As a sole proprietor in Texas, you’re subject to federal income tax on your business earnings, but Texas does not impose a state income tax. However, you may still need to handle sales tax and other state-specific taxes, depending on the nature of your business. The Texas Comptroller’s Office provides guidance on state tax matters.

Insurance and Risk Management

In a sole proprietorship, personal and business liabilities are intertwined, making insurance a crucial aspect of risk management. Texas business owners should consider several types of insurance:

1. General Liability Insurance: Protects against financial loss as a result of bodily injury, property damage, or other mishaps.
2. Professional Liability Insurance: Essential for businesses that provide services or advice, safeguarding against errors and omissions.
3. Property Insurance: If you own or lease space for your business, property insurance covers equipment, inventory, and furniture in the event of a disaster or theft.

Each business has unique risks, so it’s advisable to consult with an insurance professional to tailor coverage to your specific needs.

Managing and Growing Your Texas Business

Efficiently managing daily operations is key to the growth of your sole proprietorship in Texas. Develop solid strategies for customer service, marketing, and financial management. In today’s digital world, establishing an online presence through a website and social media platforms can significantly enhance your business’s reach and customer engagement.

Growth should also be a central focus. Consider how you can scale your services or products, possibly by expanding your market, leveraging online sales channels, or enhancing your product line. Stay informed about market trends and customer needs, adapting your business model accordingly.

Additional Considerations

If you plan to hire employees, you’ll need to comply with Texas employment laws. This includes obtaining an Employer Identification Number (EIN) from the IRS, registering for unemployment insurance taxes through the Texas Workforce Commission, and understanding wage and labor laws.

Continuing education is vital. Texas offers various resources for business owners, including workshops, training programs, and networking events. Engaging with local business associations or chambers of commerce can provide valuable learning and networking opportunities.

Conclusion

Starting a sole proprietorship in Texas is a straightforward process, but it requires careful planning and ongoing management. By following these steps and staying informed about legal, financial, and operational aspects, you can build a strong foundation for your business and position it for success.

Additional Resources

For further information and assistance, consider these Texas-specific resources:

• Texas Small Business Association (SBA) Offices: SBA offers counseling and training for small businesses.
• SCORE Texas: Provides free business mentoring and education as part of a national nonprofit organization.
• Texas Economic Development: Offers resources for business planning and development at Texas Economic Development.

Starting a business in Texas holds great promise. With the right approach and resources, your sole proprietorship can thrive in the state’s dynamic and supportive business environment.

Additional Texas Articles

How to Form an LLC in Texas (TX LLC 2023)

How to Register a Business Name in Texas

16 Best Registered Agents in Texas (February 2025)

Texas LLC Formation – FAQs

Texas LLC Name Search (February 2025)

FAQs

1. Do I need to register my sole proprietorship with the state of Texas?

• If you are operating under a name different from your legal name, you must file an Assumed Name Certificate (also known as a DBA) with the county clerk in the county where your business is located. Statewide registration isn’t necessary unless you plan to hire employees, in which case you need an Employer Identification Number (EIN) from the IRS.

2. What are the tax implications for a sole proprietor in Texas?

• As a sole proprietor, you’ll report your business income and expenses on your personal tax return. Texas does not have a state income tax, but you are responsible for federal income and self-employment taxes. Depending on your business, you may also need to handle state sales tax obligations.

3. Are business licenses or permits required for sole proprietors in Texas?

• The requirements for licenses and permits vary based on your business type and location. You can check with your local city or county government and use resources like Texas.gov Business Permits Office to identify what’s needed for your business.

4. How do I open a business bank account for my Texas sole proprietorship?

• To open a business bank account, you typically need your personal identification, an Assumed Name Certificate if you have one, and possibly an EIN. Banks may have additional requirements, so it’s best to check with your chosen financial institution.

5. What kind of insurance should I consider for my sole proprietorship in Texas?

• Consider general liability insurance to protect against common business risks. Depending on your field, you might also need professional liability insurance, property insurance, or workers’ compensation insurance if you have employees.

6. Can I hire employees as a sole proprietor in Texas?

• Yes, you can hire employees. You’ll need to obtain an EIN, register for unemployment insurance taxes with the Texas Workforce Commission, and comply with other employment-related regulations.

7. Is a sole proprietorship the best choice for my business in Texas?

• It depends on your specific business needs, industry, and personal liability tolerance. A sole proprietorship is simple to set up and offers complete control, but it doesn’t provide personal liability protection like an LLC or corporation.

8. How do I handle taxes for a home-based sole proprietorship in Texas?

• As a sole proprietor, you’ll report your business income and expenses on your personal tax return using Schedule C. For a home-based business, you may also qualify for a home office deduction. It’s advisable to consult with a tax professional to ensure you’re meeting all federal and potentially applicable state tax obligations.

9. What steps should I take to choose and register a business name in Texas?

• First, choose a name that reflects your business and is not already in use. You can check for name availability through the Texas Secretary of State’s Direct Search. If the name differs from your legal name, file an Assumed Name Certificate with your county clerk.

10. Do I need any special permits or licenses to sell products online in Texas?

• While the general requirements for permits and licenses apply, you’ll also need to consider sales tax permits if you’re selling taxable goods or services. The Texas Comptroller’s Office can provide guidance on sales tax requirements for online businesses.

11. How can I protect my personal assets from business liabilities in Texas?

• Since a sole proprietorship doesn’t offer liability protection, it’s important to have adequate insurance. You might also consider converting to a business structure with limited liability, like an LLC, if your business grows or involves significant risks.

12. Where can I find resources and support for starting my sole proprietorship in Texas?

• Texas offers various resources for entrepreneurs. The Texas Small Business Development Centers (SBDC) provide free business consulting and low-cost training. Additionally, organizations like SCORE offer mentorship and educational workshops.

Resources

IRS: Income & Expenses
IRS: Sole Proprietorships
Starting a Business in Texas
Texas Secretary of State FAQs
Texas Governor’s Small Business Resource Portal
Texas Secretary of State: Business Structure Information
Texas Economic Development: Start a Business in Texas
Texas Secretary of State: Business Start-up Guides and Resources

However, there are some important things to keep in mind when considering whether to act as your own Registered Agent.

What is a Registered Agent for an LLC?

In the United States, a registered agent for a limited liability company (LLC) is a designated individual or company that is appointed by the LLC to receive important legal and official documents on behalf of the LLC.

The registered agent’s address is typically the address that the state government and other official entities will use to deliver documents to the LLC, such as tax notices, legal summons and complaints, and other official correspondence.

• The registered agent must have a physical address in the state where the LLC is registered
• Be available during normal business hours to receive and sign for important documents.

The registered agent plays a critical role in ensuring that the Texas LLC is properly notified of any legal actions or proceedings, and can help ensure that the LLC stays in compliance with state regulations.

In many states, including Texas, having a registered agent is a legal requirement for LLCs. By designating a registered agent, the LLC can ensure that it receives important legal and official documents in a timely manner and that it is able to respond appropriately to any legal actions or proceedings.

Texas Registered Agent Requirements

In Texas, a registered agent is an individual or a company that is appointed by a business entity to receive legal documents and other important correspondence on behalf of the company. The requirements for a Texas registered agent are as follows:

1. Eligibility: The registered agent must be an individual who is a resident of Texas or a company that is authorized to do business in Texas.

2. Availability: The registered agent must have a physical street address in Texas where they can receive service of process and other legal documents during normal business hours.

3. Accessibility: The registered agent must be available during normal business hours to receive legal documents and other important correspondence on behalf of the company.

4. Consistency: The registered agent must be consistent in their availability and must not change their physical address or contact information without notifying the business entity they represent.

5. Authorization: If the registered agent is a company, they must be authorized to do business in Texas and must have filed the required documents with the Texas Secretary of State.

6. Consent: The registered agent must provide written consent to act as the registered agent for the company.

It’s important for business owners to choose a reliable and trustworthy registered agent to ensure that their legal documents and other important correspondence are received promptly and handled properly.

If you are comfortable with these requirements and feel confident that you can fulfill the responsibilities of being a Registered Agent, then you can certainly act as your own Registered Agent in Texas.

However, if you prefer to hire a third-party Registered Agent to handle these responsibilities, you can also do so.

Hiring a third-party Registered Agent can have some benefits, such as:

• Allowing you to maintain your privacy by not having your personal address listed publicly as the Registered Agent.
• Ensuring that someone is always available to receive legal documents and notices during regular business hours.

However, there will be additional costs associated with hiring a third-party Registered Agent.

Requirements summary: While you can be your own Registered Agent in Texas, it is important to carefully consider the requirements and responsibilities associated with this role before making a decision. If you are unsure whether acting as your own Registered Agent is the right choice for your business, you may want to consult with an attorney or a business formation service for guidance.

What Does a Registered Agent Do?

The primary responsibilities of a Texas registered agent include:

1. Receiving legal documents: The registered agent is responsible for receiving legal documents, such as lawsuits, subpoenas, and other legal notices, on behalf of the business entity they represent. This ensures that the company is properly notified of any legal actions or proceedings and has an opportunity to respond in a timely manner.
2. Receiving other official correspondence: In addition to legal documents, the registered agent also receives other official correspondence, such as tax forms, regulatory notices, and other important business-related mail.
3. Maintaining accurate records: The registered agent is responsible for maintaining accurate records of all the legal and official documents they receive on behalf of the company. This ensures that the company has a clear record of all legal proceedings and other important business-related correspondence.
4. Forwarding documents to the company: After receiving legal and official documents, the registered agent is responsible for forwarding them to the company in a timely manner. This ensures that the company is aware of any legal proceedings or other important matters that may affect its business.

Overall, the Texas registered agent plays a critical role in ensuring that a business entity receives important legal and official correspondence in a timely and efficient manner.

Who Can Be a Registered Agent for an LLC In Texas?

In Texas, a registered agent for a limited liability company (LLC) can be an individual who is a resident of Texas, or a corporation or other business entity that is authorized to do business in Texas. The registered agent must have a physical street address in Texas where they can receive service of process and other legal documents during normal business hours.

What is a Registered Agent Service?

A registered agent service is a professional service that provides a physical address for a business entity and receives service of process and other legal documents on behalf of that entity.

The registered agent service acts as an intermediary between the business entity and the legal system, ensuring that the entity is properly notified of any legal actions or proceedings.

Registered agent services are commonly used by businesses that operate in multiple states or that do not have a physical address in the state where they are doing business.

By appointing a registered agent service in a particular state, the business entity can ensure that it is in compliance with state law and that it receives important legal and official correspondence in a timely manner.

Should I be My Own Registered Agent in Texas?

There are pros and cons to being your own registered agent for an LLC. Here are some of the key factors to consider:

Pros:

1. Cost Savings: If you act as your own registered agent, you will not have to pay a third-party registered agent service, which can save your business money.

2. Control: As the registered agent for your own LLC, you will have full control over the handling of important legal documents and correspondence, which can be important for some business owners.

3. Privacy: By acting as your own registered agent, you can keep your personal information private, as opposed to using a third-party registered agent service that may disclose your personal information.

Cons:

1. Availability: As the registered agent for your LLC, you must be available during normal business hours to receive important legal documents and correspondence. This can be challenging if you are frequently out of the office or if you have other commitments that prevent you from being available during these hours.

2. Public Disclosure: If you act as your own registered agent, your name and address will be listed in public records, which can result in an increased volume of unsolicited mail or even unwanted visitors.

3. Compliance Risks: As the registered agent for your LLC, you will be responsible for ensuring that all important legal documents are received and handled properly. If you miss a deadline or fail to properly handle a legal notice, it can result in serious consequences for your business.

Question summary: Acting as your own registered agent can save your business money and give you more control over important legal documents. However, it also comes with added responsibility and the risk of compliance errors.

It’s important to carefully consider the pros and cons before deciding whether to act as your own registered agent or hire a third-party registered agent service.

Establishing an Texas LLC not only provides the vital benefit of safeguarding your personal assets, as denoted by the term “limited liability,” but also lends legitimacy to your business in the eyes of prospective customers.

In this comprehensive guide, we will guide you through the entire process of forming your Texas LLC, ensuring that your business commences on a solid foundation. It is advisable to bookmark this page, as the process may span several days from initiation to completion.

To form an LLC in Texas, there are 2 main options to consider: 

You can go online and visit the Texas Secretary of State’s website and do it yourself or you can use an LLC service.

Our top 3 recommended LLC services: 

• Northwest Registered Agent  $39  Best for privacy & no upsells
• Bizee $0  Best budget LLC
• ZenBusiness $0  ‘Worry-Free Compliance’

Setting up a Limited Liability Company (LLC) in Texas is relatively straightforward.

Steps to Form an LLC in Texas

Step 1. Choose a Name for Your LLC: In Texas, the name of your LLC must be unique and not be confused with any other entity names currently on record with the Texas Secretary of State. It must end with “Limited Liability Company”, “LLC”, or “L.L.C.”. You can check name availability through the Texas Secretary of State’s website.

Step 2. Appoint a Registered Agent: A registered agent is a person or business entity authorized to do business in Texas who agrees to accept legal papers on the LLC’s behalf if it is sued. They must have a physical street address in Texas.

Step 3. File a Certificate of Formation: You need to file Form 205 (Certificate of Formation) with the Texas Secretary of State. This document establishes your LLC in Texas and includes details like your business name, registered agent information, whether it’s manager-managed or member-managed, and more. There is a filing fee that needs to be paid at the time of submission.

Step 4. Create an Operating Agreement: Even though Texas does not require it, an Operating Agreement is highly recommended for all LLCs. This document establishes how your LLC will be run, including how decisions will be made, how profits will be distributed, and what happens if a member wants to leave the business.

Step 5. Obtain an EIN: Most LLCs are required to get an EIN from the IRS. This is also known as an Employer Identification Number and is used to identify your business for tax purposes. Even if you don’t have employees, LLCs are typically required to obtain an EIN. You can apply for this for free on the IRS website.

Step 6. Register for State Taxes: Depending on your business, you may need to register for one or more forms of state tax. For example, if you will be selling goods in Texas, you’ll need to register for a sales tax permit. Check with the Texas Comptroller of Public Accounts for details.

File Annual Reports: Texas does not require LLCs to file an annual report, but you are required to file an annual Franchise Tax report. Check with the Texas Comptroller’s Office for specifics on this requirement.

This page will provide you with all the necessary steps to do a Texas entity name search, draft a Texas LLC operating agreement, and answer questions like, can I be my own registered agent in Texas? and how long does it take to get a Texas LLC? and ensure your Texas LLC is properly formed.

If you are planning an eCommerce business in Texas, you can visit our report on how to get a Texas sales permit and Texas resale certificate.

If you want to use an LLC service, visit our list of the best LLC services in Texas.

How Much Does it Cost to Form an LLC in Texas?

Answer: The Texas state filing fee is $300.

You must file your Certificate to Form an LLC with the State. Additionally, you will need to pay a $300 filing fee to the state of Texas. To get your LLC registered in Texas, there are several steps you need to take.

Hiring a professional LLC formation service is an affordable way to set up an LLC in Texas.

I recommend Northwest Registered Agent for LLC formations in Texas.

LLCs are subject to pass-through taxation. Hence, your LLC won’t bring you a massive tax burden in Texas. These are the fees and taxes that must be paid when forming an LLC within Texas.

Texas State Fees

Texas does not require you to reserve an LLC name. Your LLC name can be registered at the time you register it.

A Name Reservation is required if you want to keep the name for a long time without having to register your LLC. You can renew it by paying $40 Your LLC name will remain in reserve for an additional 120 days. Name Reservation may be required in some states.

The Franchise Tax rule states that LLCs must pay this tax annually. The annual Franchise Tax report is the LLC’s annual revenue report.

The amount of franchise tax for Texas is lower than other forms of business ownership. There may be tax benefits for women-owned businesses.

Texas State Taxes

Steps to Start an LLC in Texas

Step 1 – Name your Texas LLC

Name your company. Once you have chosen a name that you like, make sure it isn’t confusing with another company. Here are some things to consider.

These are the words you need to use

Section 5.5056, Texas Business Organizations Code, provides a simple guideline for naming your company.

Texas LLC names must include one of the following:

• Limited liability company
• Limited company
• Abbreviation of one or more of the phrases above, such as LLC, LC or Ltd. Co.

Texas current regulations prohibit you from using the words “limited” and “company” alone to identify an LLC.

Your LLC must also have a name that is distinct from other Texas businesses. Your company name must be distinctive enough to avoid confusion with other businesses.

Texas Name Search Page

https://mycpa.cpa.state.tx.us/coa/

Words You Can’t Use

You’re not quite done yet. Also, you need to make sure you don’t use words that aren’t allowed. These additional rules are listed on the Texas Administrative Code website of Secretary of State.

An LLC cannot use another company’s name. It cannot have a name that could be confused with government agencies or companies.

You are prohibited by the naming rules from using these words:

• Anything that could make people believe your company is part a government
• Any language implying that your LLC does something illegal
• “Grossly offensive” words
• “Olympic” and similar words
• “Bank” and similar words
• “College” and similar words
• “Veteran,” “Disabled,” “Spanish,” and similar words are used if the name suggests that the entity is intended to benefit war veterans and their families.
• “Lotto” and “lottery”

Remember, however, that you must obtain a license to operate your business and/or permission from the governing entity if your business name is anything that would require a professional license.

When naming an LLC in Texas, a good rule of thumb is to not allow anyone to approve the name unless they have provided proof.

Find the right name for your LLC

You will need to search for current business names before you submit your name. This can be done through the Secretary Of State, as you can with most states. To do this, you will need a SOSDirect account. A fee will be charged for each search.

You can also use the Taxable Entity Search, which is easier and more cost-effective. This website allows you to search multiple names or word combinations free of charge. This way, you can submit a name confident that you’ve done all your research and it didn’t cost anything.

Texas DBA: Use a fictional business name

You can change the name of your company after you have named it. To do this, apply for an assumed name (also known by DBA or “doing business as”). These names will help you identify who is the owner of your company. It is also possible to make clear that your company and companies with similar names have different owners.

It is easy to get a DBA. The Texas Business and Commerce Code Chapter 71 provides details regarding assumed business names. An assumed name certificate must be filed with the Clerk of the County or Counties where you intend to do business.

The following should be included in the certificate:

• The DBA that you would like to use
• Name of your LLC
• Texas: Where was your LLC organized?
• The DBA’s life expectancy (not more than 10 years).
• Your principal address, either inside or outside Texas, is the street or postal address.
• The counties where your LLC conducts business with the DBA

The Secretary of State provided a form DBA certificate on its website. Check with your county clerk to see if there are any additional requirements that your certificate must comply with. While the Secretary of State charges a $25 filing fee for the certificate, you should check with your local office to see if there are any additional fees.

Step 2 – Appoint a Registered Agent for your LLC

Each Texas business must choose a person to receive mail and serve process. These individuals, known as registered agents, are the point of contact between your company and the public.

Service by process refers to legal terms for legal documents or business letters. Your agent allows the state and the public to communicate directly with you.

This address will be used if the state has to contact you regarding your business. Your Texas registered agent will receive the paperwork if your LLC is sued.

It’s not as easy as it looks to choose a registered agent. Some owners do it all themselves. However, more experienced individuals hire companies to act as their registered agents. These agents use their offices to receive service of process and mail correspondence.

You might be tempted to become your own registered agent for many reasons.

• It’s affordable: You don’t have to pay someone for something that you can do.
• It’s easy: Your only contact and address information that you need to be current is yours.
• All important documents will be sent to you personally.

However, there are good reasons not to be your own agent.

• No privacy: Your address will be made public on the websites of the Secretary of State and Comptroller.
• Junk mail/spam: Public-facing addresses are subject to junk mail and a limited amount of legitimate mail.
• No breaks: Registered agents must always be available during business hours. They are not allowed to take time off.
• Business interruptions: If the address of your agency is the same address as your business, clients and business could be affected by your duties as an agent. It could be embarrassing for your business if you’re served with a lawsuit right in front of your customers.
• If you forget something: It is your responsibility. Always ensure that your agency address and contact information are correct and current. You are responsible for any mistakes or missing items.

Registered agent service is the best choice. It is their address that people see, and not yours. Their job is to ensure you don’t miss any important information. This will allow you to focus on your business.

If you are looking to register a foreign LLC in another state, a registered agent service may be helpful. Find a company that has business in all of those states and pay one fee for multiple offices and agents. Then let the registered agent handle the details.

Step 3 – File your Texas LLC Certificate of Formation

Your certificate of formation of your LLC is one of the most important documents you will file.

Texas law states that filing a certificate is what brings your LLC into existence. Your company is a concept before the filing. It’s now a legal entity that can sign contracts, and conduct business.

What should I include in my Texas Certificate of Formation

Texas Business Organizations Code Section 3.005 requires that your certificate of formation include:

• Your Texas LLC name
• Your LLC’s purpose (which can also be described as “any lawful purpose”)
• You don’t want your company to be around forever. So you need to decide how long the company should last.
• The LLC’s registered street and postal addresses
• Name and address of the registered agent for the LLC
• Each member of the LLC must provide their name and address.

It’s a good idea, before you file your certificate to inquire about any additional requirements.

A professional LLC formation service is also available if you want to save time and avoid the headache of filing your LLC.

Texas LLC Filing Fee

The Texas Secretary of State fee schedule states that you must pay a $300 fee to obtain your certificate of formation.

After processing, the Secretary’s Office will issue an acknowledgment. This acknowledgment proves that (1) your LLC is valid and (2) it can conduct business.

Learn More: What Does it Cost to Form an LLC In Texas?

Texas LLC Processing Time (Normal and Expedited).

The Secretary’s office estimates a Normal processing time is 5-7 business days. You can request expedited processing for $25 per file if you require it earlier.

Expedited processing in Texas means that the document will be processed within the first business day after the Secretary of State has received it. However, this is not always true.

How you send your certificate may impact the processing time. Documents sent by mail or fax could take up to 40 business days. Documents sent by fax or mail can take up to 4-5 days for expedited service.
Non-expedited documents sent electronically to the Secretary of State (through the SOSUpload System) can be processed within 4-5 days.

These times are subject to change because of their workload. The office informs you that they can’t guarantee accuracy. When you file, be sure to ask about the turnaround times.

The Secretary of State’s Office asks you to include a cover letter along with your certificate requesting expedited processing. Your name and contact information should be included in the cover letter.

Step 4 – Draft your Texas LLC Operating Agreement

Operating agreements, also known as company agreements, are contracts between you (the owner) and other members of your LLC.

These are the rules that govern how your company conducts business. Although Texas LLC law does not require that you have one, we recommend you do so. It is worth the time to create the contract.

You are likely a planner and able to think things through if you form your own LLC. Even the most experienced business owners cannot predict what might happen in the future.

An operating agreement can help you handle unexpected situations before they become a problem.

The operating agreement should contain all relevant information about the LLC. Your company may have six LLC owners (LLC owners), but they won’t all be doing the same thing. One person might put up the most money, and the other might manage the business.

Each person is listed in the operating agreement and their expected work hours. It might be a good idea for an LLC member who is a passive investor to pay more if the company requires more money. Managers might have a responsibility to cut down on business spending.

These contracts are great because you can be as specific as you like for each member of your LLC. You can also set how members can purchase shares in the company or what their rights are.

The operating agreement outlines what happens if someone fails to perform their job. Are they allowed to be fired? You have the right to decide if you have an operating contract. If you don’t have an operating agreement, you leave the decision up to the state law. This could not lead you to the desired result.

These are just a few uses of LLC operating agreements. An operating agreement can also include:

• They set out the rights and obligations of LLC members. The operating agreement should state that one LLC member will be responsible for managing the business or running the books.
• These include whether an LLC has a member manager or non-member manager, and what the manager can do. Managers have particular duties to the company as well as the members. These should be stated in the operating agreement.
• These documents outline the legal rights and obligations of the LLC. The operating agreements should also detail how the company can conduct its business day-to-day.
• These rules outline how new members can join the company. Also, they have rules for how members can exit.
• They determine how and when members are paid their profits. They may also be able to create various types of membership or payment schemes.
• These indicate whether managers or members are in charge. Also, they explain how to fire and hire managers.
• These guidelines outline how and when an LLC should be disbanded. While you may not wish to do so now, it might come in the future. It is best to plan ahead and think about the possibility.
• They explain how to modify the rules. In the future, you may have to modify your operating agreement. You should establish the rules for changing your operating agreement.

Texas Business Organizations Code Section 101.051 allows for you to use your certificate form for the same purposes that an operating agreement. Although you might be tempted not to create an LLC operating agreement, we strongly recommend it.

You don’t need to file an operating agreement with the state, unlike the certificate of formation. It is your contract. These items will be included in your articles. However, you must amend the articles each time the company changes its rules. It is costly, time-consuming, and expensive to file an amendment (with a $150 fee).

After all members have signed it keep it safe and make copies. A good operating agreement should be available as a reference for your business.

Step 5 – Get an EIN (Employer Identification Number) for Your Texas LLC

EINs are numbers used by the IRS to keep track of tax-paying companies. An EIN is your LLC’s social security number. While not all LLCs require one, many do. It is important to know when you will need one.

These are the most frequent reasons you might need an EIN.

• Is there more than one member of your LLC?
• Are there employees in your LLC?
• Does your LLC get taxed as either a C-corporation or an S-corporation?

If you answered yes to any of these questions, then you will need an EIN. Note that banks may require an EIN in order to open a bank account for LLCs.

It is easy to obtain an EIN. You can apply online at the IRS website. The entire process will take approximately five minutes. Alternatively, you can file IRS Form SS-4 by mail or fax.

Never pay anyone to do this for you unless it is part of a larger package.

How Much Does it Cost to Form an LLC in Texas?

Answer: The Texas state filing fee is $300.

An LLC is more cost-effective than any other business structure. To form an LLC in Texas, there are fees and charges. LLCs are subject to pass-through taxation. Hence, your LLC won’t bring you a massive tax burden in Texas. These are the fees and taxes that must be paid when forming an LLC within Texas.

Texas Foreign LLC

You can form a Foreign LLC by filing the Certificate of Foreign LLC with the Texas Secretary Of State. Foreign LLCs permit you to operate your business across multiple states.

To form your foreign LLC in Texas, you will need to submit additional documents such as the Certificate of Foreign LLC and the Certificate of Good Standing.

You must complete the Application for Registration as a Foreign Limited-Liability Company to set up an LLC in another country. For more information, see our guide on Texas Foreign LLC. This will explain the steps involved in filing a foreign LLC.

Steps After Starting Your Texas LLC

Congratulations! Congratulations! Although it may seem small, this is a significant step toward your goal. Do not stop. You have a few other things that you can do to protect your business and yourself.

Register for a Business Bank Account

For several reasons, your company should have its own bank account.

• Accounting: Your goal is to make money. If you don’t know how much money your company deposits and spends each month, you can’t tell whether you’re making any money.
• Credit: Even the most successful businesses need to borrow money. However, you don’t want your personal credit to pay for business expenses. Separating company money helps to build company credit that can be used for business purposes.
• Personal Asset Insurance: Separating your company’s funds from your personal money is what makes an LLC a good idea. You risk losing this protection if you do not have a business bank account.

It should be clear what the accounting reasons for separating money are. Separating money should be obvious. Keeping financial records of income and expenses is a key part of running a business. It is easiest to use different accounts.

This is the most important point. Protecting yourself against legal liability is crucial. Your personal assets are not at risk if your company is financially independent and sued by another party.

Lawyers call this company/individual separation

Get Business Insurance For Your Texas LLC

It can be easy for you to get lost in all the legalities of starting your business. It is important to ensure that your business is protected by obtaining the right insurance policies. Your business will determine the type of insurance you need. However, there are some policies that you might want to consider:

• General Liability Insurance: This insurance is required if you sustain an injury to your property. This insurance covers legal representation and damages.
• Commercial automobile insurance This is similar to your automobile insurance. It covers your drivers and vehicles.
• Workers Compensation Insurance: Workers’ compensation policies cover employees for injuries sustained on the job. Texas law doesn’t require that companies have these policies, unlike many other states. However, it is smart to have it because it protects you against injury lawsuits from your employees.
• Commercial property insurance This covers your property in case of damage. Flood insurance is usually a separate policy.
• Professional liability insurance for lawyers, architects, doctors, and other professionals. It covers legal defense and provides protection in the case of a malpractice lawsuit.

Keep Your Texas Company Licensed

After your Texas limited liability company has been formed, it is important to ensure that you follow the law. Failure to comply with legal requirements can result in your business being stopped by the state. You may also be subject to tax penalties or fines.

Texas Business Permits and Licenses

Texas does not require any general business licenses or permits. This is accomplished by your certificate of formation. Remember that each city or county may have its own rules. Check with the relevant authorities to determine if they require a permit for your business.

Some types of businesses may also need professional licensing. Think doctors, lawyers, or architects. For information on professional licensing requirements for your business, contact the Texas Department of Licensing and Regulation.

Texas Tax Requirements

Franchise taxes are imposed by the state on LLCs. The franchise tax is calculated on the “net surplus” (a number that is difficult to calculate, but roughly translates into the business’s assets minus members’ contributions). This state accountant’s website has forms that will help you determine this amount when it comes to tax time.

Other tax obligations may apply to you. Register for and pay the employment taxes if you have employees. If you sell goods, you must collect sales taxes and pay them to the state. To ensure that these issues are addressed promptly, you should consult a business accountant.

Federal LLC Tax Filing Requirements

Your LLC, whether it is single or multi-member, will be treated by the Internal Revenue Service as a pass-through entity. This means that you company won’t have to pay taxes directly. Instead, income from the LLC will be passed to you, and you will be taxed on it. Your personal federal tax return should include any profits or losses made by your LLC.

Annual Report and other filing requirements

You are not required to file an annual report by the Texas Secretary of State for your LLC. However, you will need to file an annual report with the comptroller regarding your Texas franchise tax.

Texas LLC – FAQs

1. What are the essential steps to start an LLC in Texas? To start an LLC in Texas, you must first choose a unique name for your LLC, appoint a registered agent, file a Certificate of Formation with the Texas Secretary of State, obtain an Employer Identification Number (EIN) from the IRS, create an operating agreement, and comply with any other necessary state and local business licenses and permits.
2. How do I choose a compliant and unique name for my Texas LLC? Your LLC name must be distinguishable from other entities registered in Texas. It should include the phrase “Limited Liability Company” or its abbreviations like “LLC.” You can check name availability through the Texas Secretary of State’s online business name database.
3. What is the role of a registered agent in a Texas LLC, and how do I choose one? A registered agent is responsible for receiving important legal and tax documents on behalf of your LLC. In Texas, a registered agent must have a physical address in the state and be available during regular business hours. You can appoint an individual within the company, including yourself, or hire a professional service.
4. What is the process and cost for filing a Certificate of Formation in Texas? The Certificate of Formation is filed with the Texas Secretary of State, either online or by mail. It includes details like your LLC’s name, registered agent, and management structure. There’s a filing fee, which you can confirm on the Secretary of State’s website for the latest amount.
5. Is an operating agreement required for my LLC in Texas? While Texas law does not require LLCs to have an operating agreement, it is highly recommended. This internal document outlines the LLC’s management structure and operating procedures, which can help in resolving future disputes.
6. What specific business licenses or permits does my Texas LLC need? The requirements for business licenses and permits depend on your LLC’s industry and location. You’ll need to check with local and state agencies like the Texas Department of Licensing and Regulation and your local city or county government.
7. What are the ongoing compliance requirements for a Texas LLC? Texas LLCs must file an annual report and pay a franchise tax to the Texas Comptroller of Public Accounts. The report is due by May 15 each year, and the tax amount depends on your LLC’s annual revenue.
8. Can a non-U.S. resident start an LLC in Texas? Yes, non-U.S. residents can form an LLC in Texas. The process is similar to that for U.S. residents, though there might be additional considerations regarding international taxation and banking.
9. How long does it typically take to form an LLC in Texas? The time it takes to form an LLC in Texas varies. Online filings are typically processed faster than paper submissions. Expedited filing options are available for an additional fee, which can speed up the process.
10. What should I do if I decide to dissolve my Texas LLC in the future? To dissolve an LLC in Texas, you must file a Certificate of Termination with the Texas Secretary of State and ensure all taxes and fees are paid. It’s important to follow the proper dissolution process to avoid legal and financial issues.
11. Can I file for an LLC in Texas by myself? Yes, you can do it yourself or use a filing service.
12. How long does it take to get an LLC in Texas? If you file online, it takes about 3 business days to get your LLC. If you file by mail, it takes about 5 to 7 business days.
13. How long does a Texas LLC stay active? In Texas, you need to renew your LLC every year by filing the ‘Annual Report’ with the Texas Secretary of State. Texas does not charge a renewal fee for this report.

Texas Secretary of State Contact Information

Mailing Address

Business & Commercial Section
Texas Secretary of State
P.O. Box 13697
Austin, TX 78711-3697

Physical Address

1019 Brazos St.
Austin, TX 78701
Monday – Friday, 8:00am – 5:00pm

Contact Information

Email: Corpinfo@sos.texas.gov
Phone: (512) 463-5555

Conclusion

That’s our guide on how to set up an LLC in Texas.

An LLC protects your personal assets and is simpler than other business structures. Thanks to the state’s laws, it is easy to set up an LLC in Texas.

We have additional articles to provide you with all the necessary steps to do a Texas entity name search, draft a Texas LLC operating agreement, and answer questions like, can I be my own registered agent in Texas? and how long does it take to get a Texas LLC? and ensure your Texas LLC is properly formed.

If you are planning an eCommerce business in Texas, you can visit our report on how to get a Texas sales permit and Texas resale certificate.

If you want to use an LLC service, visit our list of the best LLC services in Texas.