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In Texas, you can create a limited liability company.
A limited liability company is a type of business that is well suited to smaller businesses.The owner can limit personal liability in the company's finances.The company's owners won't lose their personal assets if someone takes the company to court.They are solely responsible for their investment in the business.Flexibility in how the company runs is provided by forming an llc.In Texas, forming a limited liability company is easy and inexpensive.Many tax advantages are provided by federal and state law.The net income of the business is passed on to the owners who report it on their personal income forms.
Step 1: Pick a name.
Choosing a legal name is the first step in starting an limited liability company.Pick any name you want, but keep in mind that there are a few restrictions and rules about it.You should try to make your name unique.You can't duplicate the name of another business.Sometimes they won't allow a business that is similar to another.The decision will be made on a case-by-case basis by the secretary of state.Explicit sexual language is not allowed in the name.It may not have words that would confuse it with a federal agency.In Texas, limited liability companies have to include their name at the end of it's name.You should include this in your name registration.You could name your company "Bagelcorp, LLC."
Step 2: You can check the name's availability.
The Texas Secretary of State's website can be used to make sure no one else has registered under your name.You must request an account on the Secretary of State Direct website to search online for names.The request for an account should be processed in 15 minutes.You can search the database to make sure your name isn't taken once your account is activated.Each search costs a dollar.At the same time, check for the URL availability.A website is important for marketing.You can use one of the many domain search tools on the internet to check for a URL.
Step 3: Search for assumed business names.
The public or assumed name of your business may not match the legal name.Make sure the business name you want to use is not duplicated.In day to day business operations, you will use an assumed name.You could have registered your company as "Bagelcorp, LLC.""Bob's Big Bagels" is the name of the shop you want to open.This is also known as a DBA name.The same assumed name can be used by more than one business.If you want to get the best results, you should use an original name.Customers may be confused if you and another company use the same name.If you use an assumed name that is the same as another company's legal name, this could cause problems.If you have the same name, you may lose business.If there are two different Bob's Big Bagels, it may be hard for consumers to tell them apart.
Step 4: You should reserve your legal business name.
You can file your legal company name with the county clerk's office or online at the Texas Secretary of State Direct website.Texas businesses have to reserve their legal name with the Secretary of State.The state can find and store information on the business.To file online or in person, you need to give the name of the company and the business owner.In order to operate a business in Texas, you will need to describe the type of business and the county in which you operate.If you fill out the form online, you will need to include your fee payment, either by check or cash, or with a credit card.You have to pay $40.00 for a name registration to prevent other businesses from filing under your name.It is not possible to file your business under an already registered name.If you plan on doing business under an assumed name, you will need to file a certificate with SOS direct.The secretary of state charges a fee.You can be charged a fee in the county you live in.
Step 5: You should consider trademarking your name.
If your name is original or creative, you may want to register it as a trademark.A trademark can be used to differentiate your product or service.It can protect you from other companies.A trademark will allow you to hold a domain as your own.It protects intellectual property related to your business.You can register your business name with the U.S. Patent and Trademark office.Go to their website and fill out the form.Information about your business will be required on the form.A fee of between $275 and $325 is required to register your trademark.If trademark law confuses you, you can consult with a trademark lawyer who can help you avoid legal liability and assure that your application is accepted.
Step 6: Determine who your board is made of.
The owners of the company are considered members.An limited liability company can be run by one person or a board.The people who are authorized to act on behalf of the company have the authority to do so.They are in charge of the business.The managers don't have to be members of the company.How many people have authority is up to you and the other members.Before you fill out your certificate of formation, you need to make a decision.
Step 7: An operating agreement can be drafted.
Your company's policies and procedures are outlined in an operating agreement.Although not required by Texas law, an operating agreement is helpful at clarifying verbal agreements.The purpose of the business should be stated in the operating agreement.The members have powers and duties.The day-to-day responsibilities of each member can be outlined.Each member should have a percentage of ownership.The accounting responsibilities should be assigned.Because financial accounting is so important to a business's success, you should clarify and delegate who will have responsibility for check writing, distributing profits, and bookkeeping.There is a process for a member's withdrawal.The members can leave or die.There needs to be a process for what happens to the member's shares.The remaining members may agree to purchase the shares.Dissolution procedures should be established.Not every company lasts forever.When and how the company can be dissolved should be specified.You could decide that the profits of the company will be divided according to share ownership and that it can be dissolved by a majority vote.
Step 8: You can find a registered agent.
You need to name a registered agent for the company on your application.The person who will be contacted in the case of a lawsuit is called the agent.The entity that is registered to do business in Texas is known as the registered agent.One of the partners will act as the agent.You can hire an agent.If the business is not located in Texas, this is useful.If you want to find a qualified agent, you can contact one of the Big Four agents.Fees and consumer reviews are gathered for over 25 agents working in Texas.The limited liability company is not allowed to act as its own agent.
Step 9: A certificate of formation is needed.
This form is required by the State of Texas.You have to pay the fee after you've registered your name.There is a certificate of formation application on the Texas Secretary of State website.The company name and legal address are required.The business purpose, names of members, and general business structure are some of the things you'll have to fill out.The corporate structure of your company is laid out in the articles of organization.The partners and board members of the company will be specified.The articles of incorporated are also known as this document.The online system can be used to file the form.You can deliver the form by mail if you choose to do so.Box 13697 is in Austin, Texas.You can fax it as well.You can deliver it to the James Earl Rudder Office Building.A certificate of formation filing fee is $300.If you file online, you will have to pay an additional fee.
Step 10: You need to get any required local licenses.
There are different license requirements in Texas.To find out if you need licenses or permits for your business, contact your county clerk's office.If you are opening a restaurant, you must have the appropriate licenses from the health department.What type of licenses you need, how to apply for them, and what the fees will be can be found at the Chamber of Commerce.The Texas Department of Licensing and Regulation can give you more information.They will have applications for licenses.You can apply for an electrician's license online through this department.You can choose your occupation by clicking on "occupational licenses".Fees can be paid with a credit card.
Step 11: You have to apply for an employee identification number.
An employee identification number is used by the IRS.It is similar to a social security number.Corporations and small businesses use EINs to account for employee tax withholdings.When setting up an limited liability company, you must have an EIN.To apply for an EIN, visit the IRS website.You can apply for an EIN online.Click on "apply now" after reading the guidelines.You need to fill out an online form to apply for an EIN.The name and address of your company are required.The name and social security number of the owner or managing member are required.The information you need to enter is about the members of the company.You can mail the form to the IRS.You don't have to pay for the application if you go through the IRS.
Step 12: You have to pay franchise tax.
Texas requires limited liability companies to pay a franchise tax.You can find information about how to pay on the Texas Comptroller of Public Accounts website.You can register your company online or by completing a PDF.Companies pay a 1% tax.
Step 13: You can open a bank account for your business.
The last thing you need to do is open a bank account for your company.You can start doing business after this.Before opening an account, you will need your EIN.If you need to present other documentation to open the account, ask the bank.Banks in Texas may have different requirements.You may need to bring your certificate of formation or business license.It's a good idea to consult with your bank about the best options for your business needs.If you prefer to hold a checking account, you may need overdraft protection.If you will be depositing a lot of money, you may want to consider an interest-bearing account.