State of texas business LLC [Expert-Advice]



Last updated : Aug 3, 2022
Written by : Devon Villarrvel
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State of texas business LLC

How do I get an LLC for my business in Texas?

Limited Liability Company: A Texas limited liability company is created by filing a certificate of formation with the Texas Secretary of State. The Secretary of State provides a form that meets minimum state law requirements. Online filing of a certificate of formation is provided through SOSDirect.

How much does it cost to get a LLC in Texas?

A new LLC that is being formed in Texas needs to file a Certificate of Formation—Limited Liability Company (Form 205) with the Texas Secretary of State, and pay a $300 filing fee. If you need a certified copy of the Certificate of Formation, there is a $30 fee. If you need a Certificate of Status, there is a $5 fee.

Can I do my own LLC in Texas?

Prepare a Certificate of Formation and file them with the Texas Secretary of State to register your Texas LLC properly. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail.

How does an LLC work in Texas?

An LLC with only one member will be taxed as a sole proprietorship unless it elects to be taxed as either an S corporation or a C corporation. An LLC with two or more members will be taxed as a partnership unless it elects to be taxed as either an S corporation or a C corporation.

Is it hard to get an LLC in Texas?

Starting an LLC in Texas is Easy. To start a Texas LLC, you'll need to file the Certificate of Formation with the Texas Secretary of State, with a filing fee of $300. You can apply online or by mail. The Certificate of Formation is the legal document that officially creates your Texas LLC.

How quickly can you get an LLC in Texas?

The office normally processes non-expedited documents within 5-7 business days. Expedited service is available for an additional $25 per document and expedited documents are generally processed by close of business the first business day following the date of receipt.

Do you have to pay for LLC Every year in Texas?

When you calculate all required fees and formation costs, you can spend anywhere from $1,000 to $3,000 on your business. Aside from the franchise tax, however, Texas imposes no additional annual fees on LLCs.

How much tax does an LLC pay in Texas?

Texas Taxes As mentioned above, Texas charges most local businesses the franchise tax, which is usually about 1% of some portion of the income of the company. This tax is leveled against LLCs, C Corporations, and S Corporations. Sole proprietorships and partnerships are immune to the tax.

How long does an LLC last in Texas?

During formation, the owner(s) of the LLC can designate its lifetime in the Article of Incorporation. After said date, if the company is planning to continue its business activity due to any reason, a new date has to be set and notified with the Texas government.

Can a foreigner open an LLC in Texas?

Yes. Since foreign LLCs must pay state franchise tax in Texas, you need to file an annual franchise tax report with the Texas Comptroller of Public Accounts.

Do I need a business license if I have an LLC in Texas?

Do LLCs need to obtain business licenses in Texas? Registering your business as an LLC is not the same as applying for a business license. All types of businesses, including LLCs, may require a business license from a city or county, as well as certain state tax permits or licensing for regulated industries.

What is an LLC and how does it work?

A Limited liability company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, owners cannot typically be held personally responsible for the business debts and liabilities.

Is Texas good state for LLC?

Texas offers many advantages to LLCs formed in the state. Notably, its business environment and economic strength, asset protection for the members of the LLC, tax benefits, and a great deal of flexibility. If your business has a physical location in Texas, it is probably best to form your LLC in Texas.

What are the benefits of opening an LLC in Texas?

Texas limited liability company benefits include tax benefits, asset protection and ongoing support from the Texas Secretary of the State. Primarily, the benefit of a forming your small business as a limited liability company combines the characteristics of corporations and partnerships.

What is the difference between an LLC and a corporation in Texas?

Corporations are owned by shareholders, managed by a board of directors, and administered by officers. LLCs are owned by members and managed by members, managers, or both. An LP is a partnership of one or more limited partners and one or more general partners. For more information, see Selecting a Business Structure.

Which state is best to set up an LLC?

  • Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners.
  • Wyoming offers low fees and great tax benefits for people looking to start an LLC.

How do I know if my LLC is active in Texas?

  1. Call the State. Call the State Business Information Line at 512-463-5555 and tell them: “Hello, I am forming an LLC and I'd like to check to see if my name is available.”
  2. Send an Email. The Texas Secretary of State replies to emails very fast.
  3. Search the State's Online Database.

How much does an LLC cost?

You can file the LLC filing documents online, by mail, or in-person when visiting the local SOS office. The filing costs usually vary from $50 to $150 which is a single-time fee. If you plan to form your company in another state, then you might have to provide additional documentation and pay a higher formation fee.

What is a sole proprietorship vs LLC?

An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible. A sole proprietorship is an unincorporated business owned and run by one person.

Do LLCs pay taxes?

An LLC does not pay income taxes; rather, income is passed to the LLC's members, and they report and pay tax. Even though an LLC does not pay tax itself, it still must report its income to the IRS using an "information" return.


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State of texas business LLC


Comment by Alline Bengochia

hey what's up everybody welcome to NCO knowledge today we're going to show you how to file for a limited liability company in the state of Texas so let's get to it right this is the portal you're gonna want to go to to create an SOS Direct account we'll be putting the link in the comments section so if you want to know or you can't see that URL don't worry about it look at the comment section and you should be able to see that site there are you gonna request for an SOS Direct account it will ask for your email and then they will send you a email confirmation as well as a temporary password once you complete that you will then enter that information here and you will be prompted to change your temporary password to a permanent password and then it will ask you for some personal information it's going to ask for your name your address and a credit card to keep on file you won't be charged anything but it's part of the identification verification process and just know that if you do decide to go through with it you will be charged so whatever card you use make sure it is the card that you want to be charged for your business I can't show you this Porsche portion since I've already done it and it's a one-time process concept alright this is what the portal should look like once you get in here alright one of the first things you're gonna want to do is go to this name availability search okay it's charge they charge a dollar plus tax for every name search that you do but it's important that you do this because you don't want to file for your company and the name already exists all you're doing is prolonging the process so click here and search for your name if you find that your name is available you will come down here in this drop down portion and you will look for domestic liability company all right you will hit file document all right essentially what you're doing is you're filling out the form 205 in the state of Texas which is the certificate of formation limited liability and company you could Google this form so you should be able to look for it online and kind of see what they're gonna have for it's all pretty self-explanatory on there you will have to pay this three hundred dollar fee plus tax so once you complete this form online and hit submit usually within 48 hours to 72 they will send you your notification let you know that you are officially the owner of a limb liability company all right that's it that's how to file a limited liability company in the state of Texas make sure you look us up and see your websites you can email me at NCO websites at outlook comm if you need a website for your new business


Thanks for your comment Alline Bengochia, have a nice day.
- Devon Villarrvel, Staff Member


Comment by tresorS

how to start an llc in texas hi my name is eric and in this video i'm going to show you three methods to start an llc in texas why you might want to choose one method over another but also some things to be aware of when setting up your llc if you're not familiar with the term piercing the corporate veil you'll definitely want to watch this video and towards the end of this video i'll actually talk about ways that you can potentially save on taxes with your business so first method that you can do is going directly through your state website with texas state.tx.us and this is the link right here you can find that in the description of this video and any kind of question you have about setting up an entity in texas is going to be on this page the one downside of going through your state website is a lot of times they're not the easiest tools to navigate you know from a user experience it can be kind of difficult and they'll just throw so much information at you so you're like where do i even go well the first thing you may be interested in is the fee schedule so if you look at this again a lot of information but what we want to look at is this row here this is the cost for you to set up an llc in texas the filing fee is 300 so no matter what route you go you're not going to get around this 300 filing fee with the state of texas just know that up front but now if we go back why don't we take a look and scroll down here it says can i file a certificate of formation online so if you do the diy route you're just using the state website it says sos direct and this is going to take you through where you can enter the site if you do go this route it is one dollar to get set up it's just kind of like to help them with their operations again though some of the difficulty of going these routes is these sites through a state website can be pretty hard to navigate and it's like you need adobe acrobat and winzip and it's just going to throw a lot of information at you that can be kind of complicated now in your situation if you do have a complicated situation you have a business that's making money you're doing sales out of state you're not sure where to get set up and what you're supposed to be doing sometimes with a complicated situation you may want to consult with an attorney one resource i'm not affiliated with them in any way but i just like them they're called avo and what you can do there is you can put an llc in texas so this would be kind of your second method that you can take if you're setting up an llc in texas and what i would recommend is skip past the ads right and then go down to the people that are just organically listed here what you'll find is you'll see reviews and you'll also see their avo rating so you know based on those reviews you get somebody with a good review a good rating and then let's say you click on them you can also see all right llcs represent 12 of his uh total business and he also focuses on business and estate planning so you want somebody that that's what they do they're in the state of texas and they can consult with you some of these people you'll find on here also do offer a free consultation kind of depends from attorney to attorney but if you click around you may find that some of them offer a free consultation now this route though if you go with hiring an attorney to set up your llc you could be looking anywhere from a thousand to three thousand dollars once you actually go through the process but it's highly recommended if you have a complex situation i'm not an attorney or cpa i did consult with several different ones for setting up my own llc and what i can tell you is if you have a complex situation consult with an attorney all right so a third potential method that you can go is through a service like ink file if you're not familiar ink file is very much like legalzoom or zen business or rocket lawyer if you're familiar with all these services the one way the ink file kind of deviates from those services is the fact that they charge you zero dollars in the first year literally if you get set up with the service they will make no money off of you for the first year and they have a very clean interface and it's very easy to follow on how to set up your business so in this particular case let's say you're setting up the llc and your state of formation is texas what you'll see here is in their silver package is that you pay that state fee it's 300 but your package fee is zero that's if you stay with the silver package but what i want to highlight here is the free registered agent service for a year this is really important so going back to the cost of what it is for setting up an llc in texas what i have highlighted here is that 300 state filing fee ongoing llc fees are zero if you're curious this link will take you to a website called nolo that explains that in further detail why you don't have any kind of fees going forward um but uh you'll also see that there is a registered agent fee of 119 now if you go back to the ink file page here you can see that it's a free registered agent service for a year but year two year three it's 119 now you might be wondering like what is a registered agent fee this ink file service tons of great resources in here and they have about registered agents a lot of information you can absorb here if you scroll down to this section right here you'll see that this is where it's 119 after your first year is free but really what a registered agent is doing for your llc is it's making it a legit entity because it is required that you have a registered agent on file and typically that registered agent is a third party that accepts legal documents also lets you know if you need to renew with the state if there's any important updates or anything that you need to do that's very important for your business now in the unfortunate situation if you were sued by an outside party what would happen is that attorney would actually send the document to your registered agent which would then give you that legal document letting you know that you're being sued and what you need to do next and that's why it's very important to have a registered agent set up in fact if you do not have a registered agent for your llc it could be found that your llc is not legit now why is that important at the beginning of this video i talked about piercing the corporate veil now some people get llc's a little bit confused they think they may be setting it up for tax reasons really when you're setting up an llc you're just doing it to limit your liability now what the llc does is it helps create a divide between your personal assets and your business assets so then in the unfortunate situation where you are sued in your business they can't go after your personal assets such as your home your car and your personal bank account now the important thing to understand is that if you're sued the attorney that is doing the suing is going to look for cracks in your llc what they're going to do is try to pierce the corporate veil one way they may do that is to see if you actually have a registered agent on file is


Thanks tresorS your participation is very much appreciated
- Devon Villarrvel


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