Steps to Create an LLC in Texas
What is Involved in Forming an LLC & Things to Consider
The overall process of starting an LLC is not complicated. Here is what you need to know.
Of course, the official information is on The Texas Secretary of State website: www.sos.state.tx.us/corp/formationfaqs.shtml
They give a lot of info, which makes it seem complicated. Or you can just stay here and read our easy guide.
If you have already been operating as a sole proprietorship and now want to form an LLC, doing it yourself is quite easy.
It can get more complicated if you have more than one owner, or need to consider tax implications.
Therefore, you may want to consult a business attorney and/or a CPA, since it does involve legal and tax matters. This will help ensure that you don’t run into legal problems in the future.
The basics steps include 1) choosing a name, 2) getting a virtual address, 3) finding a registered agent, and 4) filing a certificate of formation.
1) Decide on a Name for Your LLC
Texas has some naming requirements, one of them being that it has to be unique. Again, the Secretary of State website explains all of it.
www.sos.state.tx.us/corp/namefilingsfaqs.shtml
But again, they make it complicated. You can do an initial Google search for your chosen name, and that will give you a pretty good idea if it’s unique. During the process to submit your application for an LLC online, there will be an option to check your name.
2) Get a Virtual Address
Technically, a virtual office address is not a requirement to file an LLC in Texas. Many people simply use their home address for their official business documents.
However, if you are concerned about privacy issues, it’s a good idea. Read this article for more reasons why you should get a virtual address for your LLC.
It’s not very expensive if you shop around. For example, here at The Drawing Board, we offer a virtual address in Richardson at a very reasonable cost.
Of course, if you have an actual business office and want to use that address, that is even better.
3) Find a Registered Agent
A registered agent is required in Texas to file an LLC. The registered agent is someone or an entity that can be served process or other legal documents on behalf of your LLC. The agent must have a physical address and be available during business hours.
You can serve as your own if you want. But for the same privacy reasons as using a virtual address, many prefer to hire a registered agent.
You can easily find an agent at a very reasonable cost. Shop around, because some are not so reasonable. You can find some that only charge $35/year.
4) Submit Your Application Online
You need to submit an application on the Texas Secretary of State website. This is also known as filing a certificate.
This might be the hardest part, but it’s not that hard. Take a little time to learn about how, and you can save a little money.
For step-by-step instructions, follow our guide on how to submit application for an LLC in Texas.
Should I Hire Someone to File My LLC Certificate for Me?
On the other hand, if you don’t want to bother with it, there are plenty of services that will file an LLC for you.
Search around online and you can find some that are not too expensive. Be careful to understand all the fees. Some places charge a cheap initial rate, but then have rather high renewal rates.
But again, follow our step-by-step instructions and you’ll be fine.