Form an LLC in Texas

Read our free guide below to form an LLC.

Skip ahead to:

Start the Formation Process
How to Reduce Liability After LLC Formation
Helpful Resources

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Have a professional service form an LLC for you.
Two such reliable services are:

If you are starting a company in the USA from another country, we suggest you read this article first:
How to Open a Company in the USA from Abroad

Form an LLC in Texas by following our simple step guide below.

STEP 1: Name your LLC

This is the first and most important step in starting your LLC. Do some research to make sure the name you choose is suited to your business venture and is easily searchable for potential clients.

Follow the naming guidelines: Your entity name must contain the words Limited Liability Company or the abbreviation L.L.C. or LLC. Restricted words require additional paperwork (e.g. Banc, Bank, Banque, etc) and/or licensed individuals (e.g. Doctor, Engineer, etc). to be part of the LLC. Prohibited words are those that would confuse the name of your LLC with a federal or state agency e.g. FBI, Secret Service, Treasury etc.
Is the name available in Texas? Make sure the name isn't already taken by registering for a free account with Texas Secretary of State and doing a name search. Making an account on the Texas SOS website will also grant you access to File any business forms online and make any payments to the State.
Is the URL available? Check to see if the name of your LLC is available so that you can reserve your domain name. Even if you don't plan to make a website today, you may want to buy the domain name in order to prevent others from acquiring it.

Find a Domain Now

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An email address is also something to consider when choosing a name. Get a professional email (@yourcompany.com) with Google apps. Also get access to the top business tools, cloud storage, and business-grade security. - Try it for free

STEP 2: Choose a Registered Agent

You must nominate a Registered Agent for your Texas LLC

What is a Registered Agent? A registered agent is a person or business nominated by your company to officially receive and send papers on your behalf including annual state filings.

Who can be a Registered Agent? The registered agent must be a resident of Texas or a corporation authorized to transact business in Texas. You may elect an individual within the company including yourself.

Click here to find out why you may want to use a registered agent service.

Recommended: INCFILE.COM provides free registered agent service for the first year as part of their LLC Packages.

STEP 3: File the Articles of Organization

How to register your LLC with the State of Texas

File the Articles of Organization for a Domestic LLC

File Online: Begin Online Application

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Download the PDF: Articles of Organization - Domestic Texas LLC

Fee:Nonrefundable $300, payable to the Secretary of State.

Follow the instructions on the form you choose.

Important: If you're expanding your existing LLC to the State of Texas you are forming a Foreign LLC. Learn how.

STEP 4: Create an Operating Agreement

What is an Operating Agreement? An operating agreement is a legal document outlining the ownership and operating procedures of your LLC. This agreement allows you to form financial/working relationships with co-owners into an established system suitable to your business. An Operation Agreement is not required to form an LLC in Texas, but is good practice to have one.

Recommended: We provide a free sample operating agreement however we recommend getting one professional drafted by a lawyer, especially if you are starting a multi-member LLC.

STEP 5: Obtain an EIN

What is an EIN? The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.

Why do I need an EIN? An EIN is required for the following:

To open a business bank account for the company
For Federal and State tax purposes
To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done by one of two ways:

Important: An EIN is obtained after the LLC is formed. Obtaining an EIN registers the company for federal taxes.

How to Reduce Liability After LLC Formation

1. Separate Personal Assets from the LLC

Opening a business bank account is an important first step, as it:

Separates your personal assets from your company's assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

Getting a business credit card allows you to:

Separate personal and business expenses.
Build your company's credit history, which can be useful to raise money for your company later.

2. Accounting

Proper accounting for a business can avoid future complications and is important for many reasons, including:

Tracking the financial wellbeing of your business, including assets, expenses and income.
Also makes filing your tax returns a lot easier.

Bookkeeping and accounting can be daunting to many people. The right accounting software can make the process simple and easy for most business owners.

Recommended: Try Xero Small Business Accounting Software for free, with an easy mobile app to manage your finances on-the-go.

3. Register for State Tax

Do I need to register for State taxes? You will need to register for State taxes if:

you have employees
you are selling a physical product that requires sales tax within your State

Determine your state's tax obligations at SBA.gov

4. Obtain Business Licenses & Permits

Do I need business licenses & permits and how do I obtain them?

To operate your LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

Find out what types of special licensing you need by doing the following:

Fill out the U.S Small Business Administration (SBA) comprehensive guide. Follow the directions to obtaining the correct licenses and permits.
Contact your local Chamber of Commerce and ask about local licenses and permits.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

5. Get Insurance

What is Workers Compensation Insurance? This form of insurance is required for most businesses with employees, but varies by State. Click here to learn more.

What is General Liability Insurance? This is an important service, but is not required in most States. Click here to learn why.

How much will the right insurance cost you? Click here to find out.

6. Employee Hiring Compliance

Once a business decides to hire employees, certain legal obligations are required, such as:

Ensuring that potential employees are eligible to work in the US
Reporting employees as "new hires" to the State
Providing workers compensation insurance for employees
Withholding income taxes
Printing compliance posters and place in a conspicuous location
Ensuring payment of employees in specific increments as required by the state

Learn more about hiring employees for your small business.

Additional Resources

Jump Start Your Business

As a new business there are a lot of services you'll need to get started. Below we have provided a short list of some of the things that will help jump start your business.

Create a Business Plan
Create a Business Plan for free when you create an account with us. Also gain access to Free Sample Legal Forms and more. Create an Account
Set up your Company Email
Get a professional email (@yourcompany.com), and access to top business apps with Google
Design a Logo
Get a Professional logo design you will love - Guaranteed! 99designs.com
Build a Website
Secure the URL for your business and get cheap web hosting with GoDaddy
Design a Company Newsletter
Send beautiful professional-looking emails to your current/potential clients with Constant Contact
More!
Get practical suggestions you can implement in order to improve marketing, sales, business administration and operations from TRUIC. Click here.