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How to Form an LLC in Texas: A Step-by-Step Guide

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How to Form an LLC in Texas

As a Texas attorney, I often get asked how to form an LLC. While the process varies slightly by state, the basic steps are similar. If you’re short on funds and can’t afford an attorney, here’s a breakdown of what you need to know to form your LLC in Texas.


Step 1: Register with the State


The first step is to register your LLC with the state. In Texas, this involves a filing fee of $300.


Beware of Online Formation Services: Many online companies offer to form your LLC in other states, like Nevada, promising tax advantages or lower filing fees. However, if you’re conducting business in Texas, forming in another state can end up costing you more. Forming a Nevada LLC, for example, would require you to register as a foreign corporation in Texas, which comes with a $750 filing fee—much higher than the $300 fee for a Texas LLC.


So, if you’re based in Texas, it’s generally best to form your LLC within Texas to avoid extra fees and complications.


To register, simply search online for “how to form an LLC in Texas,” and you’ll find numerous guides and resources to walk you through the process.



Step 2: Prepare Your Company Documents


The second essential step is to create the documents that outline how your LLC will operate. In Texas, these documents are known as the Operating Agreement.


  • Operating Agreement: This document defines the rules, responsibilities, and structure of your LLC. It’s particularly important if you have multiple members, as it clarifies who has authority, decision-making powers, and ownership shares.


  • Annual Minutes: Each year, Texas LLCs are required to keep minutes of meetings, even if you’re the only member. Meeting minutes are formal records of the decisions made by the LLC and are important for maintaining compliance and liability protection.


Why an Attorney Can Help: Drafting an Operating Agreement can be complex, especially if your business has specific needs or multiple members. While you can find templates online, working with an attorney ensures that your agreement meets Texas requirements and provides clear guidance for operating your LLC.



Summary: The Two Essentials for Forming an LLC in Texas


  1. Register with the State: File your LLC with the Texas Secretary of State and pay the $300 filing fee.


  2. Prepare Your Company Documents: Create an Operating Agreement and record annual meeting minutes to maintain compliance.


While forming an LLC is manageable on your own, consulting an attorney can help ensure everything is done correctly, especially as your business grows. By following these two steps, you’ll have a solid foundation for your LLC in Texas.

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