When forming an LLC, the first step is to choose a name. An LLC's name is required by Texas law. You can choose any of the following common abbreviations: LC or L.C, Company or Ltd. If you already have a business name, it should be used instead. The reason for forming an LLC will be noted on this document. You will need to pay tax on all your profits.
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Once you've chosen a name, you must designate governing authority. This can be two active members, or a non-member hired by the members. An LLC may also be member-governed. The registered agent will keep the company's assets secure and be available for business transactions. A registered agent is essential for launching and maintaining an LLC. The secretary of state will review the certificate of formation and send it back stamped and signed. The newly formed LLC must stay in good standing with the state.
In Texas, an LLC must have a governing authority, or "managers." In other words, it must have a registered agent. An agent can help you launch and maintain your business. You must also draft and file an operating agreement with the Texas Secretary of State. It is not mandatory to have one, but you can change it if necessary. When creating your LLC, be sure to file it with the certificate of formation and tax license.
How to Start an LLC in Texas
Once you've decided on the name of your business, you need to decide whether or not to use a different one. The name you select must be unique. An LLC cannot have the same name as another business. Before settling on a Texas LLC name, you must make sure that it is available. Once you've made the final decision, you can begin marketing and securing funding.
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In Texas, you must also select the members and managers of your LLC. You can designate two active members as "managers," or you can hire a non-member to serve that role. Regardless of the name you choose, you need to designate the governing authority in the operating agreement. In other words, an operating agreement will help you to show that you have an LLC separate from another one.
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The next step is to choose the name of your LLC. While you should choose a name that suits you best, it must also comply with Texas state laws. If you are unsure of the right name, brainstorm several possible names for your LLC. While some of them may not be available, others might have no problem with them. So, if you're not sure what to call your new business, don't worry!
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In Texas, a Limited Liability Company is a separate legal structure. It protects the personal assets of its owners. In addition to minimizing liability, an LLC is easy to administer. It also has tax benefits. If your company is located in a state with favorable business tax rates, you can save money by forming an LLC in Texas. You can apply for a limited liability company in the state of your choice and incorporate your business without an attorney.
After deciding on a name for your LLC, you need to select a registered agent in Texas. This person should be an individual or business entity authorized to conduct business in Texas. The agent should have a street address in Texas. A P.O. Box will not do. It's also important to find a registered agent. The registered agent is authorized to accept official legal documents and process. Typically, the agent should have a local address and be able to receive mail and other documents.
In Texas, an LLC must designate a governing authority. Generally, a registered agent serves as a contact with the company. In addition to providing an address in Texas, a registered agent in the state of Texas is responsible for receiving service of process. The person who registers an LLC in Texas is considered the "registered agent". Having a registered agent will protect your business and ensure that any lawsuits or other legal actions are dealt with properly.
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