Limited Liability Company (LLC)
Texas LLC Formation Attorneys
Start your Texas LLC on a Solid Legal Foundation
An LLC, or limited liability company, is a business structure that provides its owners with limited liability. This means the owners' personal assets are likely not at risk if the LLC is sued. LLCs are relatively simple to form and maintain, making them a popular choice for small businesses.
As a business law firm, we regularly assist business owners and entrepreneurs with the formation of entities, from LLCs to limited partnerships and corporations.
Are you ready to launch your business in Texas? Our corporate formation attorneys can help you start your LLC on the right legal footing. Call today for an estimate.
On This Page
- Our Texas LLC Formation Services
- What Is a Registered Agent?
- How Much Does It Cost for an LLC in Texas?
- How Long Does It Take to Set Up an LLC in Texas?
- Recommended Governance Documents for a Texas LLC
- What Are the Advantages of an LLC?
- Frequently Asked Questions
Our LLC formation services include:
- Checking the availability of the name you choose for your entity. (Note: the name under which you transact business must be distinguishable in the records of the Secretary of State from any existing entity registered to do business in Texas.)
- Preparing and filing the Certificate of Formation
- Paying the filing fee with the Texas Secretary of State
- Obtaining a Federal EIN number (or tax ID number)
- Preparing your initial operating agreement
- Serving as the registered agent (if requested)
A registered agent is a designated individual or entity that is responsible for receiving legal and official documents on behalf of a business or organization. An LLC is required to maintain a registered agent and a registered office in Texas.
The main purpose of a registered agent is to ensure that there is a reliable and official point of contact for your business in the state of Texas, ensuring that your business can be properly served with legal documents and that important communications from the government are received promptly.
Per Texas statute, failure to maintain a registered agent and registered office may result in the involuntary termination of the LLC. Critically, it may also result in a default judgment against you. Not having a reliable, reachable registered agent is not a valid defense against adverse legal action.
Hendershot Cowart P.C. serves as the registered agent for many of the entities we help form. This ongoing service is included in our initial LLC formation fee, unless otherwise noted.
The filing fee for a certificate of formation for an LLC in Texas is $300 (as of July 19, 2023). A certificate of formation creates your business entity with the state of Texas but does not include governance documents, such as an operating agreement. Without an operating agreement, your business will be governed by the Texas Business Organizations Code, which may not accurately reflect your intent or the intent of your business partners.
Call our offices at (713) 909-7323 or contact us online for a quote on the cost of setting up your LLC. We can review your business objectives and company structure and discuss our fees and included set-up services.
Note: New veteran-owned businesses are not subject to certain filing fees, including the fee for filing a Certificate of Formation with the Texas Secretary of State.
Due to the volume of documents received by the Texas Secretary of State, even expedited requests take 12 to 14 business days. As a result, you should expect the formation of an entity to take around three weeks.
An experienced business formation attorney can ensure that the certificate is filed correctly the first time, preventing further delays.
A Texas LLC should have certain governance documents in place to establish the internal structure, management, and operating procedures of the company.
While the specific requirements may vary depending on the complexity of the LLC and the preferences of its members, governance documents for a Texas LLC should at minimum include:
- Certificate of Formation: This is the document filed with the Texas Secretary of State to create the LLC. It includes basic information about the company, such as its name, registered agent's name and address, purpose, management type, and duration.
- Operating Agreement: Although not legally required in Texas, an LLC operating agreement is an internal document that outlines the rights, responsibilities, and operating procedures of the members (owners) and managers (if applicable). The operating agreement covers topics such as profit and loss distribution, member contributions, voting rights, management structure, and procedures for adding or removing members. Without one in place, the LLC’s operation and governance are dictated by the broad provisions of state law.
- The minutes of the first meeting of members (organizational meeting): These are often used to authorize the opening of financial accounts and signatory authority for same.
- Signed and issued membership certificates: These documents evidence ownership interests or membership units in the LLC. They are similar in concept to stock certificates issued by corporations. Membership certificates serve as formal evidence of a person's or entity's ownership stake in the LLC and are typically issued to each member.
- Signed consent by the registered agent: The registered agent typically signs a document stating that they agree to serve as the registered agent for the particular business entity and that they understand their duties and responsibilities in that capacity.
- If the LLC is a series company and there are to be registered series, a certificate of registered series.
Having well-defined governance documents can help prevent disputes and litigation and ensure the smooth operation of your business. Our Texas business attorneys can ensure that the documents comply with Texas laws and regulations and tailor them to the specific needs and goals of your business.
An LLC is owned by one or more members and can be either member-managed or manager-managed. And like a corporation, executive officers can be chosen by the members or the managers, depending on whether it is member-managed or manager-managed.
Unlike corporations, there is no requirement for either an initial meeting of the owners or managers or an annual meeting.
One of the great advantages of an LLC over a corporation is the pass-through tax benefit. LLC owners do not have to file a corporate tax return. Owners simply report their share of profits and losses on their tax returns, avoiding the double taxation paid by the traditional C-Corp’s shareholders.
Ready to get started with your LLC? Contact our experienced attorneys at Hendershot Cowart P.C. Our law firm serves businesses across Texas. We have the resources and experience to help you form your LLC correctly and protect your personal assets from legal liability.
- I Already Formed My LLC. Do I Still Need an Attorney?
- What Is the Difference Between an LLC and a PLLC?
- My Business Partner and I Have Been Operating for a Number of Years. Is It Too Late to Put an Operating Agreement in Place?
- We Circulated an Operating Agreement, But I Never Signed It. Is That Agreement Enforceable?
- I Occasionally Get Business From Clients in Other States Besides Texas. Do I Need to Register as an LLC or Entity in Those States?
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