If you’re looking to protect your business while work with more flexibility, setting up an LLC in Texas is a smart choice. The procedure isn’t as difficult as it might seem, but you’ll need to adhere to a few key steps to stay legal and effective. Starting with choosing your company’s name to filing documents, each action serves a vital function—so prior to you begin, there’s something you should consider first.

Want to protect your business and gain flexibility? Forming an LLC in Texas is a wise decision. While it’s not overly complex, you need to complete important actions and stay in the law and operate efficiently. Starting from choosing your business name to submitting forms, each action becomes vital—here’s what to do first.

 

 

Naming Your Texas Business

Before official registration, you must pick a unique name that meets Texas state rules.

Begin by the search tool of the Texas Secretary of State to verify name availability. Your LLC name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Refrain from words that could be confused with government departments such as “bank” or “treasury.”

Avoid using prohibited words unless click here you have specific authorization.

Once choosing your name, consider holding it to protect it while you prepare your formation documents.

 

 

Choosing Your Registered Agent

Every Texas LLCs must designate a registered agent to receive legal documents and official notices on behalf of the business.

The agent must have a real location in Texas—P.O. boxes are not accepted.

You can act as your own registered agent, hire a professional service, or appoint someone you trust.

Make sure your agent is reachable during the normal working hours to receive attachments and notices. Reliability is key to staying compliant.

 

 

Submitting Your Texas Certificate of Formation

To legally create your Texas LLC, submit the Certificate of Formation with the Texas Secretary of State.

You can do this via the SOSDirect portal or by mail.

This document asks for your LLC’s name, main location, registered agent info, and management structure.

Review all details carefully; errors can cause delays.

Filing fee is $300, payable by check or online payment methods.

After approved, this submission establishes your LLC in Texas, giving you legal recognition and the ability to operate legally.

 

 

Draft Your LLC Operating Agreement

Even though Texas doesn't require an LLC to have an operating agreement, this document is highly recommended to outline ownership roles, profit sharing, and responsibilities.

It also helps in avoiding disputes among members and clarifies procedures for matters like voting and management.

Whether you’re a single-member LLC, creating an operating agreement provides professionalism and assets safeguard.

Download a sample or write your own tailored document, and everyone should sign it to confirm each member’s responsibilities.

 

 

Handling Tax IDs and Licensing

After forming your LLC, you need to obtain an EIN from the IRS—this is cost-free and needed for financial purposes, even if you don’t plan to hire employees.

Review whether yourindustry needs state or local licenses or permits, based on business activities.

Also, file mandatory Texas Franchise Tax Public Information Report to keep your LLC’s good standing and avoid penalties.

 

 

Conclusion

Starting your Texas LLC is simple by following these steps: Pick a unique name, designate a reliable registered agent, file formation documents, draft an operating agreement, and obtain your EIN. Stay up with ongoing state requirements like annual reports and licenses to keep a compliant, thriving business in Texas.