Can You Get Llc After You,already Registered Your,company

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If you lot're starting a business in Texas, the get-go step y'all'll need to take is to form a Texas LLC. A Texas LLC will separate and protect your personal assets (that's what the "limited liability" in express liability company means). Information technology will too legitimize your business in the optics of your potential customers.

This article volition walk you lot through all the steps required to form your Texas LLC and get your business organisation started on the correct pes. Be certain to bookmark this page, as the process may take you a few days from start to finish.

Take a Professional Handle your Filing

If you want to save fourth dimension and ensure your LLC filing is properly taken care of, consider using a professional LLC service:
4.8 out of 5 stars ZenBusiness ($39 + state fees)

How to Class a Texas LLC – Quick Version

Choose a proper name for your LLC (and get the domain name)
Assign a registered agent (use a registered agent service)
File Your LLC Certificate of Formation (Texas SOSDirect system – $300 filing fee)
Create Your Texas LLC Operating Agreement (here's a gratis template)
Get an EIN (IRS EIN Banana)

Or, skip all the work and use an LLC formation service. Our pick is ZenBusiness ($39 + state fees)

Steps to Grade a Texas LLC

Forming an LLC in Texas on your own doesn't take to be difficult. Just follow these simple steps below and your new business will be up and running in no time!

Step one. Choose a Name for your Texas LLC

The first pace to forming a Texas LLC is to choose a name for your business. Deciding on the perfect name for your new business is one of the about crucial parts of starting a company. Choosing a name that'south easy to remember and stands out in search engine results will help you get more than customers, which means more revenue, which leads to more than growth!

When choosing a name, there are a few searches that you need to complete earlier you settle on the final option:

1. Texas LLC Proper name Search – Search hither – This is the database of all "taxable entities" in Texas. Substantially, your proper noun must be unique to all existing entities in the country.
2. Domain Name Search – Search here – You'll want to ensure that your business's name is available equally a URL and so that you tin can proceed upwards your branding online. In many cases, the .com name may be taken. If this is the case, you tin can try adding "modifiers" to your proper noun or use a different TLD (.co, .internet, .biz, etc…) until you notice an bachelor domain proper noun. Don't skip this step. Even if yous aren't set to kickoff a website today, information technology'due south important to register your domain name so that no 1 else snaps it upward in the meantime.

Detect a Domain Now

3. Social Media Search – Depending on your business concern, you lot may want or need to have a potent presence on the dissimilar social media platforms. Fifty-fifty if you lot don't think you're going to utilise them, information technology's still wise to search Facebook, Twitter, Instagram, LinkedIn, and any other socials to see if your handle is bachelor.

Texas LLC Naming Rules

The Texas Secretarial assistant of Country has a few rules when information technology comes to naming LLCs:

You must use an LLC designator (ie. "LLC" "L.50.C.", or "Limited Liability Visitor", etc…) in your LLC's proper noun.
You cannot use a designator that could confuse your LLC with another business concern type (ie. "Corp", "Inc", "Non-Profit", etc…).
To apply a term like "bank", "university", "law middle" or other assuming words in your name, y'all must obtain approving from the proper authorities. This generally requires that your business hold the right charters or have members with sure licenses before applying.
Your name can't be and then similar to another business proper name that information technology could confuse customers.

To run across the bodily statutes and regulations governing the Texas Limited Liability Visitor naming process, run into this Texas SOS FAQ folio.

Common Issue:

The virtually common reason that LLC applications are denied is an upshot with the name. If yous follow the rules outlined above, you lot should be in the articulate, but if you aren't 100% sure then you lot may desire to work with an LLC formation service to ensure you get information technology washed right the starting time time. Our recommended LLC provider, ZenBusiness is only $39 + state fees.

Information technology's worth noting that yous should be fairly certain that the name you select is the name you lot are going to stick with. Changing an LLC's name isn't impossible, but there are a lot of headaches and fees associated with the process.

If down the road, you do decide that your LLC's name no longer serves the branding of your business organisation, a simple solution would be to create an assumed proper name (also known as a DBA). An assumed proper name allows you to keep your LLC proper noun the same and operate under a trade name different from the LLC's.

Once you've decided on a name that follows all of the guidelines above, move on to the side by side footstep.

Step 2. Assign a Registered Amanuensis in Texas

The Texas Secretary of Land requires all LLCs to engage a registered amanuensis.

A registered agent is a person or entity that is assigned to receive tax forms, legal documents, official notices, and any other documents or correspondence from the government on your business organisation'south behalf. This person can be yourself, a friend or family unit member, some other member of your business concern, or a hired registered agent service.

In order to act as a registered agent, the person or entity must:

Have a concrete street address in Texas (not a P.O. Box)
Be available at all normal business hours to accept service of process (official documents)

The registered amanuensis will be assigned on the Certificate of Formation when filed. They'll also need to consummate a Consent To Serve (grade 401A) to keep in their records.

Our recommended visitor, ZenBusiness offers a year of their registered agent service for free when you utilise them to form your LLC ($39 + country fees). After that, information technology's only $119/yr.

Should You Exist Your Ain Registered Amanuensis?

A mutual question is whether or not yous should "be your own registered agent". Taking this position for your business is absolutely possible, but there are some downsides that you should remember most before making this conclusion.

The get-go and most important downside in interim as your own amanuensis is that yous lose any anonymity that your LLC would have provided you lot. Since your LLC formation is a public record, this ways that your proper name, accost, and any other contact data volition be available for anyone to meet. This generally results in lots of junk mail, solicitations, and mayhap even unwanted visitors at your home address.

The 2d issue is a bit less common but just as of import for some folks. If you don't have a concrete address in Texas, and so you won't be able to file for an LLC. This affects non-residents or those trying to grade a strange llc.

Fortunately, using a registered agent service solves all of these problems at a very low cost. These service providers concord a physical function in each land and make the process simple for small-scale businesses.

Recommended Service:

ZenBusiness offers their Texas registered agent service free for one yr when you form your LLC ($39 + state fees) with them.

Step 3. File Your Texas LLC Certificate of Formation

Later choosing your registered agent, the next step is to file the LLC Certificate of Formation with the Texas Secretary of State. This is the document that actually forms your LLC as a dissever legal entity.

With your application, you'll need to pay the Texas LLC Filing Fee: $300.

The simplest way to file this document is online with the Texas SOSDirect system. You'll need to create an account using the name of your business organisation, an agile electronic mail accost, and a credit card that yous'll apply to complete your purchase. The organisation isn't extremely user-friendly, but everything you'll need is there.

If yous don't desire to utilize the online system, you can as well apply by mail. If you choose this option, you'll need to download the Texas Certificate of Formation (Class 205) and fill two copies out completely and accurately. Mail service both copies of Class 205 and a bank check or money order (not cash) for the $300 fee to:

Business and Commercial Section
Secretary of State
P.O. Box 13697
Austin, TX 78711-3697

Tip:

Most folks cull to use an LLC formation service instead of taking on this job on their own. The depression cost, simplicity, and confidence of accuracy of these services get in a no-brainer. Our number ane rated company, ZenBusiness is only $39 + state fees.

Step 4. Create Your Texas LLC Operating Agreement

In one case you've filed your Certificate of Formation, your next task is to complete your Texas LLC Operating Agreement.

A Limited Liability Company Operating Understanding is a governing certificate that lays out the inner workings of your business organization's construction. Think of this document as something similar to a prenup, except a lot simpler and less expensive. It will protect the interests of all parties involved in the instance of any sort of trouble in the future.

There are half-dozen articles in a standard Operating Agreement:

Organization – Lays out the members and business structure of the visitor (ie. single-member, multi-fellow member, series LLC, limited partnership, etc…)
Management and Voting – Goes over how the management operates and votes nigh changes in the LLC
Capital Contributions – Discusses initial and subsequent capital contributions fabricated by members
Distributions – Explains how the profits and losses will be distributed amongst members
Membership Changes – Outlines how members are added and removed from the company
Dissolution – Describes how the affairs of the LLC will exist wound upwardly in the event of dissolution

In Texas, you don't need to file your operating agreement with the land, but this doesn't mean that you should skip this step. If you don't have this document in place and something happens to you or another member, it'southward possible that the state could step in to settle any disputes. It's better to accept everything lined upward at the outset, rather than await until it's besides late.

If your business organisation needs a Texas Sales Tax License to operate, you lot volition be required to submit your operating understanding in that application. More about tax licenses later.

Gratis Texas LLC Operating Agreement Template

Our friends over at TRUiC offer a gratis Texas LLC Operating Understanding PDF for download. It'south robust enough to handle the needs of most single-fellow member LLCs. If yous have a multi-fellow member LLC, manager-managed LLC, or other, more complicated setup, they offer a backup-the-bare Operating Agreement for all other uses. Information technology's also costless of charge.

Step 5. Become an EIN (Employer Identification Number)

The final formation step for your business is to get an EIN (Employee Identification Number). An EIN is essentially like a social security number for your LLC. The IRS issues EINs and volition employ it to keep rail of your business'southward tax reporting.

The primary reasons that you'll need an EIN are:

Opening a business organization bank account and/or credit menu
Hiring employees
Revenue enhancement purposes
Further separates your personal identity from your business organization

To get your EIN, head to the IRS EIN Assistant and fill out the grade. Ane of the requirements to obtain an EIN for your business is that you'll need to enter either your personal Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). If you don't have either of these, then you'll need to jump through a few more hoops to go your EIN.

Steps After Forming Your Texas LLC

Kickoff off, congratulations on forming your LLC! Taking this starting time large step shows that you are serious almost your new business and shows its legitimacy to the balance of the world!

Now that your LLC is formed and yous have a separate legal business concern entity, you lot'll need to take intendance of a few more things before you start selling.

Open a Business Banking concern Account

The main chore of an LLC is to separate the business's assets from you, the business possessor's personal assets. This separation is chosen the corporate veil. Substantially, it ensures that if your business organization is ever sued or has any other fiscal debts that your personal assets are sheltered from these liabilities. This is where the "express liability" in LLC comes from.

The easiest mode to break your corporate veil is to mix your personal depository financial institution business relationship with your business'southward. This mixing of funds is called commingling. This opens your personal bank business relationship up to undue exposure and completely breaks the asset protection that your LLC was meant to provide.

The good news is that avoiding this danger is extremely simple. Open a concern depository financial institution account using your EIN number, transfer any initial funds (proceed a tape of this transfer), and do your best to never cross personal and business concern funds in the future.

If you ever demand to take money out of the business concern or invest more of your personal funds in just be certain to keep records of these transactions. This includes the transfers you brand when paying yourself a "salary".

Build Your Business Website

No thing what type of business you lot operate, you lot demand a website in club for your customers to take you seriously. Nigh all businesses transactions today kickoff with an online search, and then if you aren't at that place to exist plant then your customers will find your competition. It'due south that simple.

Luckily, it'due south gotten a lot simpler to build and maintain a website on your own without any prior experience or knowledge of data science or code. Drag-and-drop website builders have improved to the point that anyone tin go their business concern online with about a twenty-four hour period's work.

Our Recommended Website Builder

We recommend the GoDaddy Website Builder for all small businesses. It's flexible enough to handle most types of small businesses and simple enough to really use. Its AI-powered generation process volition help you lot to go your site upwardly and running in nigh 5 minutes. Seriously. Later on that you can modify the text and images to match your concern and that'due south it; you have a fully functioning website.

Get the Proper Licenses, Permits, and Insurance

When starting a business, there are often several licenses and permits required earlier transactions can begin. Which licenses you need will depend greatly on the type of business organization y'all plan to operate and the location.

Texas Business Licenses and Permits

Finding the specific licenses and permits your business needs to operate will start with a few elementary searches. To get started, you'll need to chop-chop search the websites of:

The country-level (Texas Business Permit Part)
The county-level
The city-level

Once you've identified the different location-based permits, you'll demand to acquire any licenses required by your industry. This includes licenses like the Texas real estate license, the Texas insurance license, the Texas liquor license, and so on.

Texas Business Insurance

One time you lot're upwards and running, it's of import to have the proper insurance policies in place for your Texas business. Some coverages will exist required by the land if you lot accept employees, while others will be required by landlords. Others still are "optional" just widely accepted due to their protective nature.

A few of the almost common concern insurance policies are:

General Liability Insurance – Protects against claims of bodily injury, personal injury, or property impairment. This coverage is generally required to hire part or warehouse space and to bid on certain jobs.
Professional Liability Insurance – Protects against claims of inaccurate or negligent piece of work. This coverage is most common in the "professional person" space where businesses offering services or communication to other businesses or consumers.
Workers' Compensation Insurance – Protects your employees from on-the-job injuries or illnesses. Texas is the only country that doesn't crave businesses to acquit workers' compensation coverage, merely y'all should still consider this when speaking with an agent.

Become a Costless Business Insurance Quote

To find the cost of insurance for your business, go a free quote past calling:

866-470-2155

Register Your LLC for a Texas State Tax Let

Certain businesses will need to apply for a Texas Country Sales Tax Permit. Not all businesses are required to register for sales taxation, but if your Texas-based business engages in any of the following, then you will need to apply:

If your concern sells or leases personal property (tangible items)
If your business offers taxable services

To employ, visit the Texas Comptroller eSystems website and make full out the required forms. You'll need to let ii-3 weeks for processing, and so be sure to have action on this as soon as possible.

Texas Franchise Tax and Public Information Written report

Each year, your Texas LLC is required to complete and submit a Public Information Report and file for Texas Franchise Taxes. This written report is due past May 15th each year and is required for all Texas LLCs and corporations.

Information on these 2 forms tin be found at the Texas Comptroller of Public Accounts' website.

This report can be quite complicated depending on your business organisation operations, so we recommend working with a licensed CPA to ensure you are filing correctly.

FAQ

How much does information technology cost to start an LLC in Texas?

The filing fee for Texas LLCs is $300. Using a recommended LLC filing service like ZenBusiness starts at $39 + state fees.

How long does it take to go an LLC in Texas?

The general filing time for Texas LLCs is 2-iii business days.

Tin can I start a Texas LLC for complimentary?

No. When filing an LLC in Texas there is a $300 filing fee for all applicants.

What taxes do LLCs pay in Texas?

While in that location is no state income tax or personal income revenue enhancement in Texas, there are several other Taxes that your LLC may encounter. We recommend speaking with a licensed tax professional to ensure you are filing and paying the proper taxes.

What is the cheapest way to get an LLC in Texas?

The cheapest fashion to get an LLC in Texas is to follow the steps above and file yourself. There is an LLC filing fee of $300, only this is required whether y'all file on your own or use an LLC filing service.

Tin I exist my ain registered agent in Texas?

Yeah. Run across above for more information.

Do Texas LLCs expire?

LLCs in Texas don't "elapse". If you fail to file annual Franchise Taxation and Public Information Reports, then your LLC may exist subject to fines and fees. Over time, this could pb to an "automatic dissolution".

Nosotros recommend working with a professional registered agent service who will inform you of upcoming reports and even assistance you file them.

Texas Secretarial assistant of Country Contact Information

Mailing Accost

Business organization & Commercial Department
Texas Secretary of State
P.O. Box 13697
Austin, TX 78711-3697

Concrete Accost

1019 Brazos St.
Austin, TX 78701
Monday – Friday, 8:00am – five:00pm

Contact Information

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