How to Form an LLC in Texas

Business structures for Texas LLCs give members incentives in legal and financial areas. Members cannot be responsible for personal debts incurred by others, such as if one member defaults on a home equity loan.

In addition, one or more members cannot assume liability for debts and obligations belonging to the LLC. The LLC also offers additional flexibility when compared to corporations, as well as tax benefits.

In order to form an LLC in Texas, you must follow a few steps:

  • Locate a registered agent in Texas who can receive legal papers served on the LLC.
  • Find the Texas Business Organizations Code (BOC) online and check the rules regarding naming business entities.
  • Contact the Texas secretary of state's public information office to search the database of current business names.
  • Nominate one person to sign formation documents.
  • Visit the secretary of state's website to download and print the Certificate of Formation Limited Liability Company form.
  • Specify if the LLC's governing authority has managers or members.
  • Describe the LLC's business purpose.
  • Enter the organizer's name and address on the form and have the organizer sign it.
  • Send the form by mail, fax, or hand-deliver it.

Does an LLC Need a Business Purpose?

An LLC resembles a partnership, but each partner has full protection from personal liability. The owners, also called members, must file the Articles of Organization to define the company's purpose. Included in the business purpose are the following:

  • Articles of Organization. Members state the name, address, members, and purpose of the partnership.
  • General Purpose Statement. This clause states the LLC will comply with tax laws and business guidelines.
  • Specific Purpose Statement. Although not always necessary depending on the state laws, this states the LLC's mission statement.
  • Nonprofit Purpose Statement. Some states let LLCs organize as nonprofits rather than corporations.

How to Start an LLC in Texas: Online Filing

If you opt to start your Texas LLC through online filing, follow a few steps to streamline the process.

  • Log into your account on the Texas secretary of state website to access the online filing portal.
  • Provide the filing fee payment information.
  • Click on the Business Organizations link and locate the Domestic Limited Liability Company option. Click File Document.
  • Select Certificate of Formation and click Continue.
  • Choose your organization type, whether it's a standard or professional LLC, and give the name of the LLC.
  • Give the registered agent name and address.
  • Specify if managers or members manage the LLC.
  • List supplemental information and attach a letter of consent, if applicable.
  • Enter the name and address of the organizer, as well as signature.
  • Click Submit Filing when complete.

How to Start a Texas LLC: PDF Filing

If you would rather file your Texas LLC documents via PDF, there are also a few steps you must follow:

  • Download the professional Certificate of Formation, and enter the name of the entity, name of registered agent, business address, nature of the management, LLC purpose, name and address of organizer, date, and signature of organizer.
  • Print the document, sign it, and make a duplicate copy.
  • Attach a filing fee payment in the form of check or money order. You can also pay via credit or debit card.
  • Apply for an Employer Identification Number (EIN). The IRS uses the EIN to keep track of tax-withholding businesses in the United States.

How to Start a Nonprofit in Texas

If you're looking to start a nonprofit organization in Texas, the Texas Business Organizations Code (BOC) governs these groups. Complete the following before you start a Texas nonprofit.

  • Select a name for the organization. The name cannot be the same or similar to that of one already in use.
  • Prepare the Certificate of Formation. In this document, you must have the proposed name, a statement specifying it is a nonprofit, its purpose for formation, if it has membership provisions, the names and addresses of its board of directors, a statement describing the distribution of assets in case of dissolution, and any supplemental information.
  • Submit documents for incorporation. Print two copies of the Certificate of Incorporation and have the organizer sign the original. The registered agent also must sign consent to serve on behalf of the organization.
  • File the incorporating fee. You can pay via check, debit or credit card, or money order.

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