Start a Texas LLC

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How to Start an LLC in Texas

Our LLC package also includes a year of registered agent service (and all that comes with it!), plus an attorney-drafted operating agreement, a library of free forms, and more. We even provide a domain name, website, SSL, email, and phone line, so you can start doing business right away.

Note that if you’ve already formed your LLC in another state and want to do business in Texas, you’ll need to register as a Texas Foreign LLC. (We can help with that, too!)

Every Texas LLC needs a name. You should review the legal restrictions for Texas LLCs to be sure you do not violate state law. It is also worth taking the time to do a simple Texas business name search. This will tell you whether or not the name you are considering is already in use by another business.

According to Texas Business Organizations Code Sec. § Section 5.053, you cannot register a name that is too similar to the name of another Texas entity. This is one of the most common reasons new business filings are rejected by the Texas Secretary of State. If you want to hold a name before you file, you can file a Name Reservation, which is good for 120 days. Another important point to consider: if you’re a licensed professional, chances are you’ll have to form what’s known as a Professional LLC and include “PLLC” or “professional limited liability company” in your business name. (PLLCs are required for most people who work in medical or legal fields.)

Tip: To ensure the name reservation process does not cause any unnecessary delays when the time comes to form your LLC, make sure that the executioner of the name reservation (the person who submits and signs the form) is one of the managers of your LLC.

You cannot form a Texas LLC without designating a registered agent. You must list the name and address of your agent on your Certificate of Formation, so you will need to hire a registered agent before you file.

Our registered agent service is only $35 a year, every year.

An operating agreement—often referred to as a ‘company agreement’ in the State of Texas—is written by your LLC members.

It is the governing document for your LLC. It lays out ownership and management of your company.

It is a good idea to get your operating agreement written and squared away as early as possible. You do not need to file it with anyone, but it is always better to address ownership and management issues at the start of your LLC rather than later.

With our LLC formation and Texas registered agent service, we include a custom LLC operating agreement free of charge.

The Texas Certificate of Formation is divided into sections called Articles. Each Article asks for specific information which is required for formation.

Articles

• Article 1: Entity Name and Type
  List the name of your LLC here.
• Article 2: Registered Agent and Registered Office
  You must list the name and address of your Texas registered agent. The address must be a physical street address. It cannot be a PO box or a virtual address.
• Article 3: Governing Authority
  You must select whether your LLC will be managed by its members or by appointed managers. Regardless of which option you choose, you are required to list the names and addresses of all your initial governors (either members or managers).
• Article 4: Purpose
  Technically, you are not required to add anything to this section. It is already filled out with the basic state law, which is that your LLC is organized to conduct lawful purposes. However, there is space to include supplemental information should you want to more completely detail the business purpose of your LLC.

Execution

After the Articles, the final section of the Certificate of Formation is related to executing the formation. The information in this section is unique in that it cannot be amended later, whereas information in your Articles can be altered by filing an amendment.

Organizer

The organizer is simply the individual who has prepared and filed your Certificate of Formation. This does not have to be a member or employee of your LLC. For example, if you hired Texan Registered Agent to form your LLC, we would sign as your organizer.

Effectiveness of Filing

You must select one of three options for when the Certificate of Formation is to become “effective” (in other words, the time in which your LLC actually goes into existence).

• When the document is filed by the Secretary of State
• A later date, not to be more than 90 days after the date of signing
• A later date depended upon a specific event, not to be more than 90 days after signing

If you select the third option, you must supply the specific event or fact that will cause the Certificate of Formation to take effect. There is no limit on what event you can specify, but it must be specific. Once the event or fact has occurred, you must file a Statement of Event or Fact with the SOS.

For example, you may say that when your LLC has raised $10,000 of capital then the document will be effective. As long as the money is raised within 90 days, the Certificate of Formation will be executed. If the money is not raised within that time, then the formation does not occur.

Signature

The document must be signed and dated by the organizer.

Not every Texas LLC will need an Employer Identification Number, but the exceptions are rare. If you are going to have employees, you are legally required to have one. You can apply for an EIN at the IRS website. It is free to apply and the application is pretty straightforward.

A Beneficial Ownership Information Report (BOI) is a mandatory, free federal filing made with the Financial Crimes Enforcement Network (FinCEN). On the filing, your LLC provides the following identifying information for the people with substantial control over or ownership stake in the company (the “beneficial owners”), as well those who formed the LLC or directed it to be filed (the “company applicants”):

• Full legal name
• Date of birth
• Residential address
• Copy of an accepted form of ID (like passport of driver’s license)

The information provided will NOT be made public. The requirement goes into effect January 1, 2024. At that point, companies formed in 2024* will have 90 days after their date of formation to file a BOI, and companies formed after that will have 30 days. While there are some exceptions—like companies in the financial sector—the vast majority of LLCs must file a BOI report.

*Any company formed before 2024 has until January 1, 2025 to file their report.

Every LLC in Texas must file the annual Franchise Tax. This tax is not a set number but is rather based upon gross receipts. The Franchise Tax is paid to the Texas Comptroller and must be submitted by May 15 every year.

You can print out the proper Texas Franchise Tax form and submit it by mail it to:

Texas Comptroller of Public Accounts
PO Box 149348
Austin, TX 78714-9348

 

What You Get with Our Texas LLC Service

Here’s a closer look at what makes our Texas LLC package unbeatable.

• A Texas Business Address
  When you hire us to form your Texas LLC, we list the address of our Austin office for your business, and for every member of your company on your filing. This Texas business address is a reputable commercial building that we own, giving you stability, privacy and credibility.
• Instant Business Presence
  We get your business online right away, so you can do business from wherever you are. Your domain name is FREE for a year, and our other business presence services are each FREE for the first 90 days then $9/month after that.
  • Domain Name. Choose your own domain name and claim your piece of the web.
  • Website & SSL. Get a secure, open source website that you control.
  • Email. Connect your website to your inbox with a business email address.
  • Phone Line. Use a business phone line (with a TX area code) instead of your own, without having to buy a new phone. Your number can be accessed on your own device with our phone app (compatible with iOS or Android).
• Free Mail Forwarding
  Our Texas LLC package includes free basic mail forwarding—up to 3 regular mail scans per year. For business owners who need a unique suite number as well, we have additional full-service mail forwarding options you can add at checkout.
• Free Forms
  When we form your LLC, we give you an operating agreement, specific to your LLC structure (member-managed, manager-managed, or single-member), as well as initial resolutions, banking resolutions, and other key documents.
• Easy Filings
  In your online account, you can also hire us for a wide range of other filings, from DBA (doing business as) names to LLC amendments.
• Compliance Tracking
  With our LLC service we send helpful reminders to your online account about your upcoming Franchise Tax Report, and you can even hire us to file it for you.
• Phone Service
  Need a business phone? We’ve got you covered with a Texas phone number, unlimited calls and SMS texts, and easy-to-use features like customizable Caller ID and voicemail. Use on any device. Android and iOS apps are available to streamline your experience. Get a free trial when you hire us to form your LLC.
• Local Support
  If you’re going to form a Texas LLC, why would you hire someone in an office in Delaware or New York to handle your filing? Our local staff has a deep understanding of how the Texas Secretary of State expects to see business filings. We work here every day, and our direct knowledge of Texas filings allows us to provide faster and more efficient service to all of our clients.

How Much Does a Texas LLC Cost?

The state fees are $310. Our registered agent service is $35/year, and our LLC formation is a one-time fee of $100.

With $35 a year registered agent service, you save the most money year over year when you choose Texan for your Texas LLC.

How Does Our LLC Formation Work?

After you order our Texas LLC package:

1. We list our Texas Business Address for every member of your LLC to better protect your personal address.
2. Our filers prepare and submit your Certificate of Formation.
3. The SOS confirms your LLC.
4. Your confirmation and custom business documents arrive.
5. We provide a full year of our Texas Registered Agent Service.
6. At the end of the year, we get in touch to ask if you’d like to renew.