Texas is one of the best states for businesses. If you are thinking of creating a limited liability company (LLC), here is a quick run down of the process. It is always recommended to speak to an experienced business attorney to ensure that an LLC is right for you.
1. Choose a Name for Your LLC
Choosing a name to define your business is difficult. In Texas, you must include “LLC” or “Limited Company”, or some variation to be clear that your business is a limited liability company. Your name must be distinguishable from other businesses. If you are afraid of others stealing your particular business name, you can reserve the name by filing out a form with a $40 fee.
2. Certificate of Formation
You must fill out a Certificate of Formation with the Secretary of State. This form contains a lot of basic business information that is necessary to the creation of your business. If you have any questions filing it out, get the professional opinion from an attorney. You can fill it out via mail or online. There is a $300 filing fee for filing your certificate of formation.
3. Registered Agent
You must appoint a registered agent for your business. This is an individual or a business that accepts legal paperwork on your LLC’s behalf, if you were to be sued.
4. Operating Agreement
While an operating agreement is not mandatory, it is certainly advised. It is important not only for proper business planning and management, but also if you have partners or investors that have certain ownership or obligation in the company. An operating agreement puts those obligations on paper so there is no ambiguity on what was agreed upon.