formation llc form texas [Solved]

Last updated : Aug 5, 2022

What forms do you need to file an LLC in Texas?

You can create a Texas LLC by filing a Certificate of Formation for a Limited Liability Company (Form 205) with the Secretary of State. The certificate must include: the LLC's name, including the suffix. the name and address of the LLC's registered agent.

How do you get formation documents for an LLC?

To form your LLC, you must submit to the state articles of organization, also called a certificate of organization (or certificate of formation in some states). You can generally download the appropriate form from the secretary of state website.

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

The basic total cost of forming an LLC in Texas is $300. The basic total cost of registering a foreign LLC in Texas is $750. The optional costs of a certified copy of the filing document, a certificate of status, and hiring an outside registered agent could raise this total by between $85 and $535.

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.

Do I need a registered agent for my 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. The BOC also permits the filing of an appointment of agent for service of process by an unincorporated nonprofit association.

What is a certificate of formation Texas?

A certificate of formation form is the document that one must complete and submit to the state to establish the creation of an LLC within the state of Texas. It sets forth the name of the proposed company, the registered agent for service of process, and the address of the place of business, among other information.

What are formation docs?

Formation Document means the certificate of formation, articles of organization or other document that is filed in the state of formation in order to initially form and create the limited liability company in question, including all amendments thereto.

Does an LLC have to file a tax return in Texas?

Unlike many other states, Texas doesn't require LLCs to file annual reports. Texas imposes a franchise tax on most LLCs, which is payable to the Texas Comptroller of Public Accounts. Franchise tax is based on the LLC's “net surplus,” which is the net assets minus member contributions.

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 are the benefits of a LLC in Texas?

• Limited Liability Protection.
• Pass-through taxation.
• Tax options.
• Simplicity.
• Ownership flexibility.
• Increased credibility.
• Name registration.

What is better a DBA or LLC?

Registering a DBA does not typically give you exclusive rights to use your business name. Forming an LLC gives you more protection, because it ensures that another business entity can't be created in your state with the same name as your business.

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.

How do I know if my 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 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.

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.

Does a single member LLC need to file a Texas franchise tax return?

Entities Not Subject to Franchise Tax The following entities do not file or pay franchise tax: sole proprietorships (except for single member LLCs);

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.

Can I use a PO Box for my LLC in Texas?

As per Section 5.201 of the Business Organizations Code, your LLC's Registered Agent must have a physical street address located in Texas. A Texas Registered Agent address (called the Registered Office) can't be: a PO Box address.

How much does a registered agent make in Texas?

As of Oct 1, 2022, the average annual pay for a Registered Agent in Texas is $48,945 a year.

Who can be a registered agent?

A registered agent can be an owner or otherwise a member of a corporation. In addition, solicitors are often designated as registered agents. Furthermore, there are service companies that are set up for the sole purpose of functioning as a registered agent.

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hello everyone my name is samantha and i am with empower multimedia we post content regarding business academia and entrepreneurship remember if you ever need help with starting or growing your business click the link in the description for a free 15-minute consultation today we will be covering how to file an llc in texas just as a reminder this video is strictly informational not advice now let's get into it let's take a look at the six steps you need to do to file for your llc in texas this information is coming from nolo.com so the first step is to choose a name for your llc under texas law an llc must contain the words limited liability company or limited company and you can use abbreviations for this your llc's name must be distinguishable from the names of other business entities already on file with the texas secretary of state names may be checked for availability at the texas secretary of state sos direct website now you also have the option to reserve a name for 120 days by filing an application for reservation or renewal of reservation of an entity name which is form 501 with the texas secretary of state the reservation may be filed online through the texas secretary of state sos direct website or filed by mail the filing fee for this is forty dollars as a side note with names you don't have to use your llc's official legal name registered in your certificate of formation when you do business out in the real world instead you can use an assumed name also known as a dba which is short for doing business as or trade name or fictitious business name to do so you must register an assumed name certificate which is form 503 with the secretary of state of texas and with the county clerk in the county where your llc's office is located you can register online through the sos direct or by mail the filing fee for this is 25 so the second step is to appoint a registered agent every texas llc must have an agent for service of process in the state this is an individual or business entity that agrees to accept legal papers on the llc's behalf if it is sued the registered agent may be a texas resident or a business entity authorized to do business in texas the registered agent must have a physical street address in texas and the llc may not be its own registered agent your third step is going to be to file a certificate of formation a texas llc is created by filing a certificate of formation for a limited liability company which is form205 with the secretary of state the certificate may be filed online through the texas secretary of state sos direct website or by mail the filing fee is going to be 300. now here is what the certificate must include the llc's name including the chosen llc designation the name and address of the llc's registered agent whether the llc will be member managed or manager managed if member managed the name and address of each initial member if a manager managed the name and address of each initial manager the general purpose clause as provided the name and address of the llc's organizer the effective date of certificate and the signature of the organizer so your next step you're going to want to consider preparing an operating agreement so this is not required in texas but it is highly advisable this is an internal document that establishes how your llc will be run it is not filed with the state it sets out the rights and responsibilities of the members and managers including how the llc will be managed it can help preserve your limited liability by showing that your llc is truly a separate business entity in the absence of an operating agreement state llc law will govern how your llc operates the operating agreement should include the following the member's percentage interests in the llc the member's rights and responsibilities the members voting powers how profits and losses will be allocated rules for holding meetings and taking votes and finally bio or buy cell provisions which determine what happens when a member either wants to sell his or her interest dies or become disabled your next step is going to be obtaining an ein now if your llc has more than one member it must obtain its own irs employer identification number or ein for short and this is even if it has no employees if you form a one member llc you must obtain an ein for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship you may obtain ein by completing an online ein application on the irs website and for this there is no filing fee finally you're going to want to consider annual reports now unlike most states texas does not require llcs to file annual reports with the secretary of state however llcs must file the annual franchise tax reports so now that it's all said and done how much does it cost to form an llc in texas so this 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 it will also cost forty dollars to file a name reservation application if you wish to reserve your llc name prior to the filing certificate of formation just as a note for veterans if you are forming a 100 veteran-owned business the secretary of state will waive this filing fee for qualifying veterans for example honorable discharges and these are if they file directly by mail in person or by fax and for more information visit the secretary of state's business information for veterans page so what about foreign llcs in texas to do business in texas all llcs organized outside of the state must register with the texas secretary of state foreign llcs must appoint a registered agent for service of process the agent may be a texas resident or a business entity authorized to do business in texas to register file an application for registration of foreign limited liability company form 304 the application may be filled online or in postal mail the filing fee for this is 750 before filing the application make sure the llc's name is available in texas by checking the texas business name database if the name is not available the foreign llc must adopt an assumed name for use in texas the llc must file an online or by mail and assume name certificate which is form 503 with the secretary of state and pay a 25 filing fee now for thinking about taxes in some cases for example you will be selling goods and collecting sales tax you will need to register with the texas comptroller of public accounts texas also imposes an annual franchise tax on most llcs depending on the tax involved you may be able to register online by mail or in person at the comptroller field office that sums up the video thank you for watching and please remember to like comment and subscribe remember if you ever need help with starting and growing your business click the link in the description for a free 15-minute consultation

Thanks for your comment Mathew Vanwinkle, have a nice day.
- Allen Renneker, Staff Member

the following information is provided for educational purposes only and in no way constitutes legal tax or financial advice for legal tax or financial advice specific to your business needs we encourage you to consult with a licensed attorney and/or CPA in your state the following information is copyright protected no part of this lesson may be redistributed copied modified or adapted without prior written consent of the author a limited liability company is a hybrid between a corporation and a partnership an LLC protects your assets in the event of a lawsuit in order to form your LLC you must file LLC formation documents with the Secretary of State once your documents are approved and sent back to you your LLC is now in existence and authorized to do business in the state we have spent considerable time to make the details of this video simple and easy to understand however we cover a lot of ground and you're going to hear a lot of new terminology we do recommend that after you watch this video you watch it a second time in order to fully comprehend all the information provided please make sure you have watched the first lesson on researching your LLC's name your desired LLC name must be available for use before you proceed with filing your LLC formation documents registered office and registered agent your LLC is required to list a registered office and a registered agent within your LLC formation documents the registered office is a physical address it cannot be a Pio box located in the state where your LLC is formed a registered agent is a person or a company who agrees to accept mail and important documents on behalf of your LLC the registered agent is located at the registered office and is generally accessible during normal business hours as we mentioned a registered agent can be a person or a company who has a physical address in the state where your LLC is formed you as an individual can be your LLC's registered agent however your LLC cannot be its own registered agent for individuals who have an address in the state it is most common that they serve as the LLC's registered agent having said that the individual person you choose as a registered agent does not need to be a member of the LLC it can be a friend or family member or frankly anyone you know who agrees to accept service of process on behalf of your LLC service of process service of process is the delivery of legal mail and important documents sent from the state or a law firm to your LLC correspondence from the state can include items such as annual report notices late notices and copies of formation documents legal documents can include items such as subpoenas and/or complaints for legal action again the purpose of designating a registered agent is to authorize someone to accept service of process on behalf of your LLC consent to serve as registered agent whoever agrees to be a registered agent must sign a consent form called consent to serve as registered agent you can find this form in the download section below this video the consent to serve as registered agent form does not need to be mailed in with your LLC formation documents in fact you don't need to mail this document anywhere the consent of servers registered agent form is an internal document meaning that you will just keep it with your business records takeaways the purpose of a registered agent and its registered office is to be a point of contact for the state and to accept service of process for your LLC you or someone you know can be your LLC's registered agent so long as they have a physical address located in the state if you don't have an address in the state that you can use you can hire a commercial registered agent commercial registered agents a commercial registered agent is a company that specializes in receiving service of process on behalf of businesses nationwide they typically charge between 100 and 250 dollars per year if you need a commercial registered agent we have a few recommendations can be found below this video with their names phone numbers and links to their websites now let's discuss your LLC formation documents the name of the LLC formation document for the state of Texas is called the certificate of formation this document is not complicated and contains basic information including listing your registered office and registered agent it will also require you to list your LLC's name and the name and address of the LLC member or members no need to stress out we will walk you through the details of the certificate of formation in just a couple minutes and we will make sure that you get it filled out correctly if you need a commercial registered agent you will first need to hire them and then obtain their address before finalizing and mailing your certificate of formation submitting your certificate of formation you will find a filing fee amount accepted forms of payment and the address or to send your certificate of formation to below this video you will need to mail two copies of your certificate of formation along with your filing fee to the state there are no additional costs or filing fees to form your LLC once you mail the filing fee along with two completed copies of the certificate of formation you can expect two things first within five to seven business days the state will send you back a copy of the certificate of formation with a stamp of approval your LLC is now a legally formed business in the state of Texas until you have confirmation your LLC has been officially approved do not order your EIN your federal tax ID number or start to use your LLC for any business purposes second in approximately two months you will get a letter from the Texas State Comptroller the division responsible for tax related items this letter will instruct you on filing your annual franchise tax report which all LLC's in Texas are required to file annual reporting and taxes regarding the annual reporting requirements your LLC is required to file two documents on a yearly basis the first is the Chai's tax report which is filed with the Texas State Comptroller not the corporation section the corporation section is the office in which you mail your LLC formation documents remember the Texas State Comptroller is a division that handles tax related items the second is a public information report or PIR that must also be submitted with your franchise tax report these reports are not easy to complete yourself they are tax documents and we recommend you get help from your accountant or tax professional because you will need to decipher a gross receipts dividends interest losses gains and other financial details even if your LLC does not generate revenue or have business activity within a given tax year you will still be required to file this annual paperwork with the state we highly recommend that you hire a tax professional when dealing with taxes for your LLC in fact it's a good idea to start looking for a tax professional once your LLC is formed so you can find someone who you are comfortable with and will help you grow your business we are now ready to fill out the certificate of formation yo

Thanks Cruz your participation is very much appreciated
- Allen Renneker

About the author

Allen Renneker

I've studied probability at Tabor College in Hillsboro and I am an expert in hoax. I usually feel calm. My previous job was social worker I held this position for 30 years, I love talking about letterboxing and rugby. Huge fan of Allen Iverson I practice luge and collect dolls.