Texas Limited Liability Company Formation Details

in Texas

If you are planning on forming a Texas limited liability company for your business, it is really important that you set it up as soon as possible so you can ensure all your business activity will be subject to the personal liability protection.
You do not and cannot be protected until the Texas Secretary of State has provided an official document evidencing the proper formation of your Texas LLC.

Choose a Name for Your Texas LLC

Texas is one of the onerous states when it comes to accepting a name for a limited liability company. It has the same rules as other states which prevent the use of the same name or a deceptively similar name as another legal entity registered in the state.

But, in addition, Texas also has additional name restrictions and is very agressive when it comes to a determination that a name is too similar to another name. Do not make the mistake of submitting an application without at least doing a preliminary name check as this will avoid unnecessarily and potentially long delays. A good LLC formation services provider will ensure that your name is available prior to submitting your filings.

Appoint a Texas LLC Registered Agent

Every Texas limited liability company is required to have a qualified Texas registered agent and office in the state. This is different from the principal business address. A registered agent is a purely administrative role for state regulation purposes. If a third party wants or needs to serve legal papers or important notices to the registered business to a Texas LLC, that LLC must have an officially designated person or legal entity in that state to accept such papers.

This is needed because a limited liability company is a fictitious person. It does not have a physical being. But because it is its independent person under the law, the state needs a certain and known place for communicating with the business.

Mandatory Filing Disclosure Requirements

A Texas LLC filing requires not only the standard disclosures such as name, registered agent and address but actually requires that member names and addresses be included for a Texas member managed LLC. If the entity is manager managed, the same information is required for the active managers.

Texas Filing Fees

Texas currently charges $300 for a Texas LLC formation. When it comes time to form yours, call ahead and confirm the latest fee as this can change often especially as states deal with budget constraints. Paying the wrong amount or writing the check to the wrong entity are two of the most common reasons for LLC registration rejections.

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For a Free Guide on the Texas limited liability company, visit: http://www.TexasBusinessFormation.com

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Texas Limited Liability Company Formation Details

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This article was published on 2010/10/07