How To Register A Llc For Mobile App

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If you lot're starting a business organisation in Texas, the first step y'all'll need to take is to grade a Texas LLC. A Texas LLC volition split up and protect your personal avails (that'south what the "limited liability" in express liability company means). It will also legitimize your business in the eyes of your potential customers.

This article will walk yous through all the steps required to grade your Texas LLC and get your business started on the right foot. Be sure to bookmark this folio, as the process may have you a few days from start to finish.

Accept a Professional person Handle your Filing

If you desire to salve time and ensure your LLC filing is properly taken care of, consider using a professional LLC service:
4.8 out of 5 stars ZenBusiness ($39 + state fees)

How to Grade a Texas LLC – Quick Version

Choose a name for your LLC (and become the domain proper noun)
Assign a registered agent (use a registered amanuensis service)
File Your LLC Certificate of Formation (Texas SOSDirect arrangement – $300 filing fee)
Create Your Texas LLC Operating Understanding (here'south a costless template)
Get an EIN (IRS EIN Assistant)

Or, skip all the work and use an LLC germination service. Our choice is ZenBusiness ($39 + state fees)

Steps to Form a Texas LLC

Forming an LLC in Texas on your own doesn't accept to exist difficult. Merely follow these unproblematic steps beneath and your new business organization will be up and running in no time!

Step i. Choose a Proper name for your Texas LLC

The first footstep to forming a Texas LLC is to choose a name for your business. Deciding on the perfect name for your new concern is one of the nigh crucial parts of starting a visitor. Choosing a proper noun that's easy to recall and stands out in search engine results will help yous get more customers, which means more revenue, which leads to more growth!

When choosing a name, there are a few searches that yous need to complete before you settle on the concluding option:

1. Texas LLC Proper name Search – Search here – This is the database of all "taxable entities" in Texas. Essentially, your name must exist unique to all existing entities in the state.
2. Domain Name Search – Search here – You'll want to ensure that your business organization's name is available equally a URL so that you lot can keep up your branding online. In many cases, the .com proper noun may exist taken. If this is the instance, you can try adding "modifiers" to your name or use a dissimilar TLD (.co, .net, .biz, etc…) until you lot find an available domain proper noun. Don't skip this step. Even if you aren't fix to start a website today, it's important to annals your domain name and then that no ane else snaps information technology up in the meantime.

Find a Domain Now

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3. Social Media Search – Depending on your business, you may want or demand to take a strong presence on the different social media platforms. Even if yous don't recollect you're going to use them, it's however wise to search Facebook, Twitter, Instagram, LinkedIn, and any other socials to see if your handle is available.

Texas LLC Naming Rules

The Texas Secretary of Country has a few rules when it comes to naming LLCs:

You must use an LLC designator (ie. "LLC" "50.Fifty.C.", or "Limited Liability Company", etc…) in your LLC'southward name.
You cannot use a designator that could misfile your LLC with another business type (ie. "Corp", "Inc", "Non-Profit", etc…).
To use a term like "bank", "university", "police center" or other assuming words in your name, yous must obtain approving from the proper authorities. This generally requires that your business concord the correct charters or take members with certain licenses before applying.
Your proper name tin can't be so like to another business name that it could confuse customers.

To see the bodily statutes and regulations governing the Texas Limited Liability Visitor naming process, see this Texas SOS FAQ folio.

Mutual Issue:

The about common reason that LLC applications are denied is an upshot with the name. If you follow the rules outlined above, you lot should be in the clear, but if you aren't 100% certain then yous may want to work with an LLC germination service to ensure you get information technology done right the first time. Our recommended LLC provider, ZenBusiness is only $39 + state fees.

It's worth noting that you should exist fairly certain that the name you select is the name you lot are going to stick with. Changing an LLC's proper noun isn't incommunicable, merely there are a lot of headaches and fees associated with the process.

If downwardly the road, you do decide that your LLC's name no longer serves the branding of your business organization, a elementary solution would be to create an assumed proper name (besides known every bit a DBA). An causeless name allows you to keep your LLC proper name the aforementioned and operate under a trade proper noun different from the LLC's.

One time you've decided on a name that follows all of the guidelines above, move on to the adjacent step.

Step two. Assign a Registered Agent in Texas

The Texas Secretary of State requires all LLCs to appoint a registered agent.

A registered agent is a person or entity that is assigned to receive tax forms, legal documents, official notices, and any other documents or correspondence from the government on your business'due south behalf. This person tin can be yourself, a friend or family member, another member of your concern, or a hired registered amanuensis service.

In social club to act as a registered amanuensis, the person or entity must:

Have a physical street accost in Texas (not a P.O. Box)
Be bachelor at all normal business concern hours to have service of process (official documents)

The registered agent will be assigned on the Certificate of Formation when filed. They'll as well need to complete a Consent To Serve (form 401A) to keep in their records.

Our recommended company, ZenBusiness offers a twelvemonth of their registered agent service for free when you use them to form your LLC ($39 + state fees). Afterwards that, information technology's merely $119/year.

Should You Exist Your Ain Registered Agent?

A common question is whether or not you should "exist your ain registered agent". Taking this position for your business organization is admittedly possible, but there are some downsides that y'all should think nigh before making this conclusion.

The offset and most important downside in interim as your ain amanuensis is that yous lose any anonymity that your LLC would take provided you lot. Since your LLC formation is a public record, this ways that your name, address, and whatsoever other contact data volition be available for anyone to come across. This more often than not results in lots of junk mail, solicitations, and possibly fifty-fifty unwanted visitors at your dwelling house accost.

The second consequence is a chip less common but just as important for some folks. If you lot don't have a physical address in Texas, then you won't be able to file for an LLC. This affects non-residents or those trying to class a foreign llc.

Fortunately, using a registered agent service solves all of these bug at a very low toll. These service providers hold a physical function in each land and brand the process simple for modest businesses.

Recommended Service:

ZenBusiness offers their Texas registered agent service free for i twelvemonth when you lot form your LLC ($39 + country fees) with them.

Step 3. File Your Texas LLC Certificate of Germination

After choosing your registered amanuensis, the next step is to file the LLC Document of Formation with the Texas Secretary of State. This is the document that actually forms your LLC equally a separate legal entity.

With your application, yous'll need to pay the Texas LLC Filing Fee: $300.

The simplest style to file this document is online with the Texas SOSDirect organisation. You'll need to create an account using the proper noun of your business, an active email address, and a credit card that you'll use to complete your purchase. The system isn't extremely user-friendly, but everything y'all'll need is there.

If you lot don't want to use the online system, you tin also employ past mail. If yous choose this option, you'll need to download the Texas Certificate of Formation (Class 205) and make full two copies out completely and accurately. Mail service both copies of Form 205 and a bank check or money society (not cash) for the $300 fee to:

Business and Commercial Section
Secretary of Land
P.O. Box 13697
Austin, TX 78711-3697

Tip:

Most folks choose to use an LLC formation service instead of taking on this job on their own. The low toll, simplicity, and confidence of accuracy of these services make it a no-brainer. Our number one rated company, ZenBusiness is only $39 + state fees.

Step four. Create Your Texas LLC Operating Agreement

Once you lot've filed your Document of Germination, your next task is to complete your Texas LLC Operating Agreement.

A Limited Liability Company Operating Agreement is a governing certificate that lays out the inner workings of your business's structure. Call up of this document as something similar to a prenup, except a lot simpler and less expensive. It volition protect the interests of all parties involved in the case of any sort of trouble in the time to come.

There are 6 articles in a standard Operating Agreement:

Organization – Lays out the members and business construction of the visitor (ie. unmarried-fellow member, multi-member, series LLC, limited partnership, etc…)
Direction and Voting – Goes over how the management operates and votes about changes in the LLC
Capital Contributions – Discusses initial and subsequent capital contributions made by members
Distributions – Explains how the profits and losses volition be distributed amidst members
Membership Changes – Outlines how members are added and removed from the company
Dissolution – Describes how the affairs of the LLC will exist wound up in the event of dissolution

In Texas, you lot don't demand to file your operating agreement with the land, simply this doesn't mean that you should skip this step. If y'all don't have this document in identify and something happens to you or another member, it's possible that the state could step in to settle any disputes. It's better to take everything lined up at the starting time, rather than wait until it's too tardily.

If your business needs a Texas Sales Tax License to operate, you will be required to submit your operating agreement in that awarding. More than about taxation licenses later.

Free Texas LLC Operating Understanding Template

Our friends over at TRUiC offer a free Texas LLC Operating Agreement PDF for download. It's robust plenty to handle the needs of most unmarried-member LLCs. If you accept a multi-fellow member LLC, manager-managed LLC, or other, more complicated setup, they offer a backup-the-blank Operating Agreement for all other uses. Information technology's as well gratuitous of charge.

Pace five. Become an EIN (Employer Identification Number)

The last formation footstep for your business is to go an EIN (Employee Identification Number). An EIN is substantially like a social security number for your LLC. The IRS issues EINs and will use information technology to keep runway of your concern'southward tax reporting.

The master reasons that you lot'll need an EIN are:

Opening a business bank account and/or credit card
Hiring employees
Tax purposes
Further separates your personal identity from your business

To get your EIN, caput to the IRS EIN Assistant and fill out the form. One of the requirements to obtain an EIN for your business is that you'll need to enter either your personal Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). If you don't have either of these, and so y'all'll need to jump through a few more hoops to get your EIN.

Steps After Forming Your Texas LLC

First off, congratulations on forming your LLC! Taking this first big step shows that you lot are serious nigh your new business and shows its legitimacy to the rest of the world!

Now that your LLC is formed and you take a separate legal business entity, you'll need to take care of a few more things before y'all start selling.

Open a Business Depository financial institution Account

The main job of an LLC is to separate the business'southward avails from you, the concern owner'south personal avails. This separation is called the corporate veil. Substantially, it ensures that if your business organisation is ever sued or has whatever other fiscal debts that your personal assets are sheltered from these liabilities. This is where the "limited liability" in LLC comes from.

The easiest mode to break your corporate veil is to mix your personal bank business relationship with your business organisation'due south. This mixing of funds is called commingling. This opens your personal bank account upward to undue exposure and completely breaks the nugget protection that your LLC was meant to provide.

The good news is that avoiding this danger is extremely simple. Open up a business organisation bank account using your EIN number, transfer any initial funds (keep a record of this transfer), and exercise your best to never cantankerous personal and business funds in the future.

If y'all e'er demand to accept money out of the business or invest more of your personal funds in just be sure to keep records of these transactions. This includes the transfers you make when paying yourself a "salary".

Build Your Business Website

No matter what type of business yous operate, you need a website in order for your customers to take you seriously. Almost all businesses transactions today offset with an online search, and so if y'all aren't there to exist found then your customers will find your competition. Information technology's that simple.

Luckily, information technology's gotten a lot simpler to build and maintain a website on your ain without whatever prior experience or knowledge of data science or code. Drag-and-drop website builders take improved to the point that anyone can get their business online with about a day'south piece of work.

Our Recommended Website Architect

We recommend the GoDaddy Website Architect for all small businesses. Information technology's flexible enough to handle nigh types of modest businesses and simple plenty to actually use. Its AI-powered generation process volition assistance y'all to get your site up and running in nearly 5 minutes. Seriously. After that you can alter the text and images to match your business and that's information technology; you have a fully performance website.

Go the Proper Licenses, Permits, and Insurance

When starting a concern, there are often several licenses and permits required before transactions tin begin. Which licenses you need volition depend greatly on the blazon of concern you plan to operate and the location.

Texas Concern Licenses and Permits

Finding the specific licenses and permits your business needs to operate volition offset with a few uncomplicated searches. To get started, you'll need to chop-chop search the websites of:

The state-level (Texas Business concern Permit Office)
The county-level
The metropolis-level

Once you've identified the different location-based permits, you lot'll need to acquire whatsoever licenses required past your industry. This includes licenses like the Texas real estate license, the Texas insurance license, the Texas liquor license, and so on.

Texas Business Insurance

Once you're upwards and running, it'southward important to take the proper insurance policies in identify for your Texas business. Some coverages will be required by the land if you have employees, while others will be required by landlords. Others still are "optional" simply widely accustomed due to their protective nature.

A few of the most mutual business organisation insurance policies are:

General Liability Insurance – Protects confronting claims of bodily injury, personal injury, or property damage. This coverage is generally required to rent function or warehouse space and to bid on certain jobs.
Professional Liability Insurance – Protects against claims of inaccurate or negligent work. This coverage is most mutual in the "professional" space where businesses offer services or advice to other businesses or consumers.
Workers' Bounty Insurance – Protects your employees from on-the-job injuries or illnesses. Texas is the but state that doesn't require businesses to bear workers' compensation coverage, but you should still consider this when speaking with an agent.

Get a Free Business Insurance Quote

To find the price of insurance for your business, go a gratis quote by calling:

866-470-2155

Register Your LLC for a Texas State Taxation Allow

Certain businesses will need to apply for a Texas State Sales Tax Let. Not all businesses are required to register for sales revenue enhancement, but if your Texas-based business engages in any of the following, then you will need to apply:

If your business sells or leases personal property (tangible items)
If your business offers taxable services

To apply, visit the Texas Comptroller eSystems website and fill out the required forms. You'll need to allow 2-three weeks for processing, then be certain to take action on this as soon as possible.

Texas Franchise Tax and Public Information Report

Each year, your Texas LLC is required to complete and submit a Public Data Report and file for Texas Franchise Taxes. This report is due by May 15th each year and is required for all Texas LLCs and corporations.

Information on these two forms tin can exist found at the Texas Comptroller of Public Accounts' website.

This report tin be quite complicated depending on your concern operations, so we recommend working with a licensed CPA to ensure yous are filing correctly.

FAQ

How much does it cost to kickoff an LLC in Texas?

The filing fee for Texas LLCs is $300. Using a recommended LLC filing service like ZenBusiness starts at $39 + country fees.

How long does it have to get an LLC in Texas?

The general filing fourth dimension for Texas LLCs is 2-3 concern days.

Tin I start a Texas LLC for gratis?

No. When filing an LLC in Texas there is a $300 filing fee for all applicants.

What taxes do LLCs pay in Texas?

While there is no state income tax or personal income tax in Texas, at that place are several other Taxes that your LLC may encounter. Nosotros recommend speaking with a licensed revenue enhancement professional to ensure you are filing and paying the proper taxes.

What is the cheapest way to get an LLC in Texas?

The cheapest way to go an LLC in Texas is to follow the steps to a higher place and file yourself. There is an LLC filing fee of $300, but this is required whether you file on your own or use an LLC filing service.

Can I be my own registered agent in Texas?

Yes. See in a higher place for more information.

Practise Texas LLCs expire?

LLCs in Texas don't "expire". If yous fail to file annual Franchise Revenue enhancement and Public Data Reports, then your LLC may be subject area to fines and fees. Over fourth dimension, this could lead to an "automatic dissolution".

Nosotros recommend working with a professional registered agent service who will inform yous of upcoming reports and fifty-fifty help you file them.

Texas Secretarial assistant of State Contact Information

Mailing Address

Business & Commercial Section
Texas Secretary of Land
P.O. Box 13697
Austin, TX 78711-3697

Concrete Address

1019 Brazos St.
Austin, TX 78701
Monday – Friday, 8:00am – v:00pm

Contact Information

Information on this page is not to be considered legal or tax advice. Information was gathered from a multitude of sources and virtually recently updated in July 2021.

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