create llc in texas for free [Real Research]



Last updated : Aug 21, 2022
Written by : Dannie Rinkel
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create llc in texas for free

Is a LLC free 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.

How much does it cost to create an LLC in Texas?

How much does it cost to form an LLC in Texas? The Texas Secretary of State charges a $300 filing fee, plus an additional state-mandated 2.7% convenience fee to file an LLC Certificate of Formation.

How do I file an LLC in Texas myself?

  1. Name Your Texas LLC.
  2. Choose Your Registered Agent.
  3. Prepare and File Certificate of Formation.
  4. Receive a Certificate From the State.
  5. Create an Operating Agreement.
  6. Get an Employer Identification Number.
  7. File a LLC Franchise Tax and Public Information Report.

Do I need a lawyer to form an LLC in Texas?

Although a business lawyer is not required, setting up an LLC without one may result in complex legal issues that may end up costing your LLC a significant expense. There are many reasons why it's beneficial to hire an experienced small business attorney in forming your LLC in Texas.

How long does it take to get 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.

Does an LLC expire in Texas?

In Texas, does an LLC have an expiration date? A limited liability company's articles of organization may allow its members to designate the duration of the company. An LLC's expiration date can be specified but if no expiration date is specified, the LLC might continue indefinitely.

What is the disadvantage of an LLC?

Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

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.

Can I be my own registered agent?

You can act as your own Registered Agent for a corporation or LLC as long as you have a physical street address in the state where your corporation or LLC is formed. The actual corporation or LLC being formed, however, cannot name itself as its own Registered Agent.

Do you need a registered agent for an LLC in Texas?

The Texas Business Organizations Code (“BOC”) requires every domestic or foreign filing entity to maintain a registered agent and office in Texas.

How much does it cost to register business in Texas?

Registering a Business In Texas To set up a corporation, there is a fee of $300. For an LLC, it's $200 per partner. DBAs cost $25 to file. SOS Direct is up 24/7 and may charge a credit card fee, or you can file in person at the office in Austin.

Do I need a DBA for my LLC in Texas?

When Do You Need a DBA? In Texas, all corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), or out of state companies that regularly conduct business in Texas under a name other than its legal name, must file a DBA with the Secretary of State.

What can you do with an LLC in Texas?

The key benefit of forming a limited liability company (LLC) in Texas is limited liability protection. Limited liability can protect your personal assets in the event your business is sued or can't pay its debts. Other Texas LLC benefits include: Pass-through taxation.

How do I register my LLC?

  1. Decide on a Business Name.
  2. Designate a Registered Agent.
  3. Get a Copy of Your State's LLC Article of Organization Form.
  4. Prepare the LLC Article of Organization Form.
  5. File the Articles of Organization.
  6. Create an Operating Agreement.
  7. Keep Your LLC Active.

Whats the difference between an LLC and DBA?

When considering the difference between DBA and LLC, a limited liability company, or “LLC,” is a legal body that is separate and distinct from its owners. A “DBA,” or “doing business as,” is merely a name owners use to conduct their business and has no legal force.

How do you know when your LLC is approved in Texas?

Texas LLC approval times Approval is sent via email. For mail filing: Texas LLC approval time is 7-10 business days if you file by mail. This does not include mail time, which takes an additional week.

How do I find out if an LLC is available in Texas?

If you wish the secretary of state to provide a preliminary determination on name availability, you may call (512) 463-5555, dial 7-1-1 for relay services, or e-mail your name inquiry to Corporations Section.

Are husband and wife considered single member LLC?

Overview. If your LLC has one owner, you're a single member limited liability company (SMLLC). If you are married, you and your spouse are considered one owner and can elect to be treated as an SMLLC.

Do LLCs pay taxes?

All of the profits and losses of the LLC "pass through" the business to the LLC owners (called members), who report this information on their personal tax returns. The LLC itself does not pay federal income taxes, although some states impose an annual tax on LLCs.

What should I name my LLC?

  • Make It Legal. The most important thing when you're choosing an LLC name is to make sure it's legal.
  • Make It Memorable. You want your LLC name to be something people can remember.
  • Make It Meaningful.
  • Make It Original.
  • Make It Distinctive.
  • Make It Domain Name Ready.
  • Make It Social Media Friendly.


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create llc in texas for free


Comment by Porfirio Fullbright

do you want to start an llc in texas this year today you will learn about the most common ways to start your business including the correct forms you'll need how to register your llc critical naming requirements and all other vital tips and tricks then as a bonus later on in the video i will reveal to you a trustworthy registered agent who will help set up your llc for free so make sure to stick with me until the end the state of texas like other states has several specific llc requirements there are three main ways you can start an llc in texas first is the diy or do-it-yourself process where you mostly depend on texas state's website the second way is hiring a professional service that practically offers more efficiency and security in the process of creating your llc while the third one is hiring an attorney we will skip the attorney hiring portion because that's expensive and most business owners won't need that service first let's take a look at the steps required for starting an llc on your own step one name your business before anything else you will have to think of the llc's legal business name each llc in texas must have a distinct llc name that is not currently in use you must include the terms limited liability company or an abbreviation such as llc you cannot include phrases such as a corporation which would lead people to believe you are a different business organization knowing if your business name is taken or not is very easy just go to google and type in the words business entity records texas secretary of state and click the first search result i also have the link in the description below for your convenience it will lead you to a landing page of business entity records in texas scroll down a little and you will see some search options which make checking the availability of your business name easier generally you can click the first option entity name and type in your business name for example i am typing a very common business name here laundry mart which will give you a list of existing business names a unique business name will say no matches found just like this random name i typed in keep in mind that the division of revenue doesn't check names for trademark compliance it's ultimately up to you and your business attorney to ensure that your llc's name doesn't infringe on any other company's rights step two texas requires llc to have a registered agent an agent has a physical address a po box is not allowed and is available during business hours this agent will serve as the llc's primary point of contact for receiving key legal papers tax warnings summons subpoenas and so on you can register yourself or someone in your company but i highly recommend getting a professional registered agent as they have more knowledge by protecting your company in cases of possible cracks while i agree that family members or friends are reliable enough to be trusted as your llc's agent you are more comfortable sleeping at night knowing that your agent is professional and trained to manage legal documents to avoid problems concerning court schedules filing reports with the secretary of state etc besides hiring a professional registered agent is not expensive in fact there are companies that offer a free registered agent as part of your package when you form your llc through them inc file is a company i recommend which has this free service inc file offers a free registered agent on your first year of signing up for their service during that free year you can already take advantage of a professional and trained agent to receive legal documents on your behalf a dashboard where you can always access the correspondence that your agent has received as well as email notifications and automatic forwarding whenever your registered agent receives documents step 3 filing the texas llc certificate of formation after that you must file the certificate of formation with the texas secretary of state's business entities division and the office of the judge of probate to officially incorporate a domestic texas limited liability company the texas state filing cost for llcs is two hundred dollars for domestic llcs and 750 dollars for foreign llcs basically a domestic llc means that you are already a resident of texas and you want to build a business in texas foreign llc on the other hand is for people living outside texas but wanting to start a business or a franchise of their business in texas with that said most businesses would be applying for a domestic llc you can file the certificate of formation online or by mailing it to the secretary of state expect the llc certification process to take approximately two weeks this is three to four days for the judge of probate and ten days for the secretary of state step four prepare an operating agreement now an operating agreement is a good idea to have in place with the other members if your llc has more than one member although a limited liability company operating agreement is not necessary for texas your operating agreement should clarify how your company or business will handle big picture issues such as allocating earnings and losses and dissolving the company your operating agreement should also cover the transfer of membership interest profits or losses and distributions initial investments decision making powers voting rights and management and lastly dissolving the business step five of file annual reports unlike most states texas does not require llcs to file annual reports with the secretary of state however llcs must file annual franchise tax reports the details for computing the tax can be complicated for more information check the comptroller of public accounts website and texas llc annual filing requirements step 6 obtain an ein an ein or employer identification number is a federal tax id issued by the irs your ein is used by them to readily identify your firm and tax filings all texas firms pay a business privilege tax and the state requires you to have an ein to file you may also be required to provide your ein when opening a bank account or applying for municipal permits or licenses obtaining an ein is a slightly longer process compared to their previous steps i'm sure you know anything to do with the irs is confusing first you have to have complete knowledge of your llc such as your company information managing member information business address business information company details and even critical information regarding vehicular assets and federal excise taxes this is another reason why getting a professional registered agent is way more convenient as they can do this for you as part of their service now let's talk about the second option to form an llc and that is hiring a professional formation service professional formation services do all the steps you should be doing on your own from filing necessary forms to acting as your registered agent you usually have to allocate a specific budget for this option as i already mentioned earlier inc file is one of the best companies out there to help you form your llc you can click on the link in the description to get access to this


Thanks for your comment Porfirio Fullbright, have a nice day.
- Dannie Rinkel, Staff Member


Comment by invinutuaticav

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 invinutuaticav your participation is very much appreciated
- Dannie Rinkel


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