Your business could receive many benefits by forming a limited liability company (LLC). If you are beginning the LLC formation process in Texas, there are some important steps to take to make sure you follow the law. Today, our business planning attorneys explain LLC formation and provide an overview of how to start your LLC in Texas.
What Is an LLC?
An LLC is a business arrangement that is similar to a corporation, but it has more flexibility concerning taxes and management. An LLC has limited liability, which means that the assets and debts belong to the LLC and not you. If the business gets sued, the damages are typically limited to the LLC’s assets. LLCs are usually taxed like partnerships or sole proprietorships, and their workplace can be self-managed.
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How to Start Your LLC in Texas
To start an LLC, you are required to file a Certificate of Formation (also called articles of organization) with the Texas Secretary of State. Our business planning attorneys would be happy to help you file the document and ensure that your LLC name meets state requirements. Your Texas LLC is formally created once the states files it. But in order to do business, there are some additional steps to take:
- Create the Operating Agreement
- Get a Texas LLC Employer Identification Number (EIN)
- Open a Bank Account
- Acquire a Business License
- File LLC Franchise Tax
- Pay the LLC Taxes
You may start an LLC in Texas, but you might consider doing business in other states, too. To operate an LLC in a different state, you will need to complete paperwork, pay a filing fee, and appoint a registered agent. If you have questions about LLC formation in Texas, contact our business planning attorneys.
Contact Us About Business Planning
At the Davidson Law Group, we understand that it can be difficult to navigate the laws surrounding your business. Whether you plan to retire from your business, or you are looking to begin entity formation, our attorneys are here to assist you. Contact us in Fort Worth, Allen, or Tyler to see how we can help.