Follow these 5 Steps to Form a Texas LLC.
To form a Texas LLC, you must submit the Certificate of Formation with the Texas Secretary of State, which costs $300. You may apply both online and by mail. The Certificate of Formation is the formal legal document that establishes your Texas LLC.
The first and most significant step in forming an LLC in Texas is deciding on a name. Make certain that the name you chose conforms with Texas naming rules and is readily searched by prospective customers.
1. Follow the Texas LLC naming guidelines:
2. Does the name exist in Texas? Check the Texas Comptroller of Public Accounts website to see if the name you desire isn’t already taken.
3. Is the URL accessible? We suggest checking online to see whether your company name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may want to purchase the URL to prevent others from gaining it.
A Registered Agent must be appointed for your Texas LLC.
What exactly is a Registered Agent? A registered agent is a person or corporate organization that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a Registered Agent? A registered agent must be a Texas citizen or an organization, such as a registered agent service, that is permitted to do business in Texas. You may choose someone from your organization, even yourself.
A Registered Agent must provide written or electronic approval to Appointment. The following information should be included in the consent statement:
It is not necessary to submit the consent statement with the secretary of state. View the Acceptance of Consent Form 401-A for more information on this requirement, as well as a fillable consent form.
You must submit Form 205 – Certificate of Formation with the Texas Secretary of State to register your Texas LLC. You may submit your application online, via mail, or in person.
An operating agreement, also known as a business agreement in Texas, is not necessary for Texas LLCs, although it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
What exactly is an EIN? The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number (FTIN), is a nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify a business entity and keep track of a business’s tax reporting. It is effectively the company’s Social Security number (SSN).
Why do I need an EIN? An EIN is necessary for the following purposes:
Where can I get an EIN? After founding the firm, the business owner obtains an EIN from the IRS (free of charge). This may be done online or in the mail.