SIMPLE LAW TX
Nearly 493,000 new businesses were formed in Texas in 2021. There were corporations, sole proprietorships, partnerships, and limited liability companies. If you’re considering starting a business, you may wonder how to get an LLC in Houston, Texas. You’re in luck because SimpleLawTX wants to help!
Below are the steps to forming an LLC, the benefits of this business structure, and a few commonly asked questions with answers. If you are ready to work with an experienced LLC attorney, call us at 281-697-6678 to request a consultation. If you want to learn more, keep reading!
There are quite a few differences between these business structures. Most are in how the business is owned and operated and the tax structure. We’ll explain each below:
A sole proprietorship is owned and operated by one person. These businesses often do not require a formal structure because the owner operates and completes business activities under their own name.
The owners or members manage a limited liability company. An LLC is a more formalized structure that benefits the business owner, such as legal protection and more favorable tax structures. LLCs can have one or more business owners.
A corporation is much like an LLC, except the owners are the company's shareholders. Corporations are a better business structure choice for large businesses with investors or several partners.
Of course, there are several other types of business structures. The above three are the most commonly used structures. If you are interested in forming a different type of business, SimpleLawTX would like to help. Contact us at 281-697-6678 to request a consultation.
So, you want to start an LLC for your business…what do you do now? There are several steps to take to form an LLC in Texas. Keep reading to learn more about each of them:
You must follow a few rules in Texas when choosing a business name. First, you can’t choose the same name as another business. This ensures potential customers are not confused between two businesses, and there aren’t potential disputes.
Second, you must have “LLC” or “limited liability” within the business name. You can quickly search your desired business name on this site and see if there is already a company registered in Texas with that name.
A registered agent is someone who agrees to accept the papers if someone sues the business. It is an agent for service of process in Texas. A registered agent can be another business or person, not the LLC. A physical Texas address is required to be a registered agent.
To form the LLC, you must file a certificate of formation. This document must include the following information:
Texas has a filing fee of $300 for this certificate as of 2023. You can mail the certificate or file it online at SOSDirect.
An operating agreement is a Texas requirement, but the Secretary of State does advise businesses to create one. This document is mostly an internal agreement outlining how the business will operate. Most operating agreements include the following information:
If you are unsure how to draft this document, we recommend you speak to an attorney about the steps. SimpleLawTX wants to help with this! Contact us today to request a consultation.
LLCs with multiple members must have an employer identification number (EIN). This is used for IRS interactions and tax filing. You can apply for an EIN on the IRS website for free.
Additionally, you’ll need to obtain a business license and possibly permits, depending on your business type. If you sell goods or collect sales tax, your business must register with the Texas taxing authority.
Filing an annual report isn’t a requirement for businesses in Texas. Businesses must file annual franchise tax reports, however. These reports are also called “public information reports.” Franchise tax reports can quickly become complicated. We recommend you read more about them or contact an attorney for assistance with this step. Call SimpleLawTX at 281-697-6678.
Besides offering protection for your business, there are other benefits to forming an LLC. We’ve outlined the top advantages of this business structure below:
Owning and operating a business doesn’t come without risks. Creating an LLC protects the member’s personal assets. This means no one can come after the member’s belongings to satisfy debts or other obligations. Each member’s risk equals the amount they invested into the business.
Pass-through taxation means the business’s profits, losses, income, and other tax amounts flow through the LLC and are distributed among the members. This allows members to avoid double taxation.
An LLC can choose pass-through taxation or be taxed like a corporation. This gives the members more control over handling taxes and allows them to choose the best option for the business.
Forming an LLC is a fairly easy process. Deciding how to outline the operating agreement is likely the lengthiest part of the process. And maintaining the LLC is also quite simple. Unlike corporations, shareholder meetings and annual reports are not required.
An LLC can have one or more members. There are no rules around how many an LLC can have. The members can also be the business leaders, meaning they own and operate the company. There are many benefits to having a flexible leadership structure.
Do you want your business to look more credible with customers, potential investors, or industry professionals? An LLC does that. It shows everyone that the business is legal and that the owners are serious about achieving success.
Many potential clients have questions about business formation in Texas. We’ve proactively gathered and answered the most popular questions about LLCs below:
Attorneys help clients by providing legal advice and services. Attorneys with knowledge of business law help clients determine the best business structure for their company, among other services.
SimpleLawTX offers several services to help form an LLC. Clients who work with us use our legal knowledge for the following:
Our legal team wants to help with your LLC. Call us today at 281-697-6678 to request a consultation with our business law attorney.
There are a lot of factors that need consideration before we can answer this question. We recommend you consult an attorney to determine whether an LLC is the appropriate business structure for your company. Click here to request a consultation at SimpleLawTX.
LLC stands for limited liability company. An LLC offers limited protection and liabilities for business owners. An LLC is a type of business structure. This structure is popular because it allows for limited liabilities, protects the business owners, and has pass-through taxation.
To file a certificate of formation for an LLC, the fee is currently $300. This is only the filing fee. If you choose to speak with an attorney or have their assistance creating the necessary documents for your business, the fee would increase. At SimpleLawTX, we have a flat fee of $1800 for business formation services.
Yes! Single-member LLCs are valid business structures. LLCs can also have numerous other members. Texas offers many advantages to business owners in the state, regardless of their structure. If you want to learn more, call SimpleLawTX at 281-697-6678 to request a consultation with our business attorney.
Now you know how to get an LLC in Houston, Texas. If you want to bypass the time it takes to navigate the intricacies, you can work with an LLC attorney like SimpleLawTX! At SimpleLawTX, we have the expertise new business owners need to form and run their businesses legally and smoothly.
We want to help you in this new journey. Contact us today to inquire about our business formation services. We look forward to speaking with you!
Schedule a Consultation
Hear From Our Clients
