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Are you wanting to start your own business or turn the one you have into a legit entity? If you're in Texas, all it takes is filling out some paperwork, either by hand or online, submitting $300 and waiting a couple of weeks to be entered into the system.
Here I'll show you how to form an LLC in Texas in four steps, which actually boil down to one step, since the first three are common sense.
Step 1: Choose a name for your LLC
This one is obvious. You have to name your business. If you're thinking about an LLC, I'm sure you've been thinking about what you want to name your business if you already haven't. If you haven't named it yet because you're struggling finding the right name, go here and enter a keyword to generate some names. Then you can click here to see if there's a domain name available for your business name.
Step 2: Choose a registered agent in Texas
A registered agent is a person or organization that accepts legal and official documents on your business’s behalf. An individual Texas resident or an organization that is authorized to do business in Texas can act as your registered agent. (You can act as your registered agent)
When choosing a person, they must be:
Any business in Texas that sells tangible personal property and certain types of services must apply for a sales and use tax permit from the Texas Comptroller. And if you’re doing business under a trade name that’s different from your LLC’s legal name, then you’ll also need to file an Assumed Name Certificate (Form 503), also known as a fictitious business name. The filing fee for an assumed name is $25.
Step 4: File a certificate of formationThe final step to form your LLC is to file a certificate of formation with the state of Texas. This document is equivalent to what other states call the articles of organization. You can file the form online at SOSDirect for faster processing, mail the form, send it by fax or hand deliver it to the Secretary of State’s Austin office.
All of the following will be included on your Texas certificate of formation:
The filing fee for the certificate of formation is $300. Domestic LLCs — LLCs that are based in and organized under the laws of Texas — should fill out Form 205. Foreign LLCs — those that are formed under the laws of another state but want to do business in Texas — must fill out Form 304. Form 304 has a filing fee of $750.
Once you submit your certificate of formation, the Secretary of State will review and file it, and send you back a stamped copy of the document. This typically takes one to three business days.
If you’ve reached this point, you’re now authorized to do business in Texas as an LLC.