Texas is an ideal place to locate your future LLC. To get started on forming a Texas LLC, we’ve got a five-step task list you need to complete. Whether you choose a college town like Austin or a growing hub like Dallas, Texas is an ideal place to form your new entity.
Follow our thorough guide to help you get your Texas LLC started.
Got questions? Reach out to one of our PRIME advisors for a free consultation!
STEP 1: Create a Name for your Texas LLC
The first step in forming your Texas LLC is to choose a business name. The name must be compliant with Texas state requirements and be memorable for your intended customer base.
Three Questions to Ask Yourself About Your New Texas LLC Name:
1. Does the name follow the naming guidelines for a Texas LLC?
- The name must include the words “limited liability company,” or LLC, L.L.C., Limited, Ltd., Company, or Co.
- The name can’t include government agency wording (FBI, Treasury, State Department, etc.).
- Additional work may be necessary if you want to include certain restricted words—including Bank, Attorney, University, or others—in your Texas LLC name.
- We can assist you through this process with a free consultation call.
2. Is the LLC name available in Texas?
The Texas Comptroller of Public Accounts offers an entity name search platform. Make sure to look up your intended business name before moving further in this process.
3. Is the URL available?
To reserve your web domain, check if it is available before naming your Texas LLC. It is a good idea to reserve the domain ahead of time.
STEP 2: Choose a Registered Agent for your Texas LLC
Every Texas LLC is required to appoint a registered agent.
The job of the registered agent is to serve as the entity for receiving important business and legal communication on behalf of the LLC. This includes tax forms, legal documents, any notice of lawsuits, and official government correspondence on behalf of your business. The registered agent is the state’s point of contact.
The registered agent must be a full-time Texas resident or a registered agent service with operations in the state of Texas. The individual chosen as the registered agent can be anyone in the company, and you can serve as your own registered agent.
In Texas, the registered agent must be appointed through a written declaration. The registered agent must produce a statement of consent with information:
- the LLC name
- a statement consenting to this filling this position
- the registered agent name
- the registered agent signature
- the formal date of the agreement
You can learn more about this form here.
STEP 3: Fill Out the Certificate of Formation
To form your Texas LLC, you must file a Form 205 – Certificate of Formation with the Texas Secretary of State. This process can be completed online or by mail. The state filing cost is $300, payable to the Texas Secretary of State. This payment is nonrefundable.
Mailing Address:
Secretary of State
P.O. Box 13697
Austin, TX 78711
If the LLC is already in business in another state, the organization should file as a Foreign LLC.
For additional aid in this process, schedule a free consultation with one of our PRIME advisors.
STEP 4: Create an Operating Agreement for your LLC
Although operating agreements ( known as company agreements in Texas) are not legally required in the state for an LLC, creating one is a best practice.
What is an operating agreement?
This is a legal document that breaks down the division of ownership and how the LLC operates.
Why should I form an operating agreement for my Texas LLC?
Creating an operating agreement streamlines communication, reduces risk, and makes sure all owners understand the responsibilities of each member.
STEP 5: Obtain an EIN for your Texas LLC
What is an EIN?
The Employer Identification Number (EIN) is a number provided by the Internal Revenue System (IRS). This number is used to keep track of your LLC’s tax reporting. It serves as a social security number (SSN) for your LLC.
Why do I need an EIN for a Texas LLC?
An EIN can be used to:
- Open a business bank account
- Track records for Federal and State tax purposes
- Hire employees
Where do I get an EIN?
You can obtain an EIN from the IRS. This can be done by the business owner online or by mail.
Mailing Address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Starting a Texas LLC: FAQs
How do I make sure my desired Texas LLC name is available?
The Texas Comptroller of Public Accounts offers an entity name search platform. Make sure to look up your intended business name before moving further in this process.
Why should I form an operating agreement?
Creating an operating agreement streamlines communication, reduces risk, and makes sure all owners understand the responsibilities of each member.
Where do I get an EIN?
You can obtain an EIN from the IRS. This can be done by the business owner online or by mail.