Texas LLC Formation

An LLC formation is completed in Texas when you create and file a certificate of formation with the Secretary of State. We ask questions in our online form that are used when we complete the certificate for you, making certain that all of the Texas state law requirements are met.

When you form an LLC in Texas, what you create is not really a corporation or a partnership. Instead, it is a distinct type of entity that has powers of both a partnership and a corporation and is thought to be the best of both worlds. Depending on how you set up the LLC, it can be like a partnership that has limited liability or like an S Corporation, without the tax and ownership restrictions commonly imposed by the IRS. Unlike a partnership, the company is its own entity, so the focus is not on the individual.

After you have completed the LLC formation, you will be known as a “member”. A member can actually be an individual, a partnership, a corporation, a trust or any other legal entity, so one member of the LLC might be an individual, while a second member (owner) might be another LLC. Generally speaking, the owner’s liability is limited to the investment they make into the company and they can still take advantage of pass-through taxation. You can see that an LLC has a very flexible structure and extremely favorable tax treatment. Still, if you are contemplating forming an LLC for the first time, we recommend that you consult with competent legal counsel and a professional accountant about your specific situation.

Also, you can form an LLC in such a way that it can be managed by either its members or by managers. The two structures are very different and we see most LLC formations done so that the members manage the company.

The requirements for the articles of organization are extensive, but we will cover most of it here. Remember that if you use our service, we will take care of all of these details. You will only need to complete a short questionnaire and we will take care of the rest. In short, the articles must include a statement as to the name of the company, a statement related to the type of entity being formed, a statement as to the purpose for which the company is being formed, the duration for which the LLC will operate, the name and physical street address of the registered agent, the name and address for each of the organizers, the signature of each organizer, a statement specific to the management structure of the LLC, the signatures of any managers, members, organizers, trustees, etc., and statements relevant to any other pertinent information about the LLC formation.

Q: How long does it take to form an LLC in Texas?
A: We form more LLCs in Texas than almost any other state in the country. As a result, we are able to process them very quickly. In fact, depending on the package you select, we can complete your entire LLC formation in less than 24 hours. Some package options can take longer, so if you have a specific time requirement you may want to speak with one of our filing specialists. They can help you make certain that your goals are met. Our phone number for immediate assistance is 1-888-525-3453.

Q: I am starting an LLC in Texas for the first time. Are there any rules related to the name I use for  my LLC?
A: Yes, there are actually quite a few state statutes related to naming an LLC. Choosing a name is truly the first step in starting an LLC and is one of the most important. The name you select:

1. must contain, as the last words of the name, the words “limited liability company” or one of the following abbreviations: “LLC” or “L.L.C.”. The words limited and company may be abbreviated to “Ltd.” and “Co.”
2. may contain the name of one or more of the members
3. must clearly be distinguishable from the name of any other LLC registered in Texas, unless the following is met: If the name is deceptively similar to or the same as the name of another business, that company must consent to your use of that name in writing before it can be filed with the Secretary of State. Just how similar your name can be to that of another business can be very complicated, but we can help you determine if your name is truly available.

You cannot imply in the name that the business was formed for any reason other than what is stated in the articles of organization or for a purpose that is illegal.
EZonlineFiling.com allows you to select 3 names in order of preference when you place your order and we are available to assist you with your name selection, to make certain your online LLC filing goes smoothly.

Q: What is an Operating Agreement and can I set up an LLC in Texas without one?
A: An Operating Agreement is a special document that details a wide variety of rules and regulations related to the governance of LLC in Texas. It will cover everything from ownership percentages to rules on restrictions and/or prohibitions on the power of any or all members involved in the LLC formation. Texas does not require that you file an Operating Agreement with the Secretary of State when starting an LLC, however, members of an LLC will generally adopt an operating agreement to regulate the affairs of the company and as an additional form of insurance in the event of changes and unforeseen happenings.

Q: Once my LLC formation is complete, am I finished or are there other things I need to do?
A: One of the great things about forming an LLC in Texas is that you do not need to complete an annual report like in most states. However, you will have some ongoing requirements related to keeping records. This is not a complete list, but you must remember that the records of an LLC need to be available for audit from a variety of groups, including the Secretary of State and the IRS. Knowing this, it is important to keep updated accounting records and books specific to the LLC and any agreements or legal documents pertaining to the management or operations of the LLC