How to Open an LLC in Texas

by April Kohl
    Opening an LLC in Texas requires filing a certificate of formation.

    Opening an LLC in Texas requires filing a certificate of formation.

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    A limited liability company, more commonly referred to as an LLC, grants small business owners the protection of limited liability for their company's debts but also gives them the freedom to operate in a manner similar to a partnership. Knowing how to open an LLC in Texas can be the key to business success for the Texas small businessperson.

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    Step 1

    Choose a name for the LLC and check its availability by consulting the state's list of registered companies. Check that the name you want is not only available but also not too similar to the name of another company so that a member of the public could confuse the two. Unless you have permission from the existing company, your new company will not be allowed to use a name the state considers “too similar.” The state of Texas requires that the name end with “LLC,” “L.L.C.” or “Limited Liability Company.”

    Step 2

    Choose someone to act as the company's registered agent. A registered agent is the person, or company, who will receive important documentation from the state on behalf of the company. The registered agent must be resident in Texas.

    Step 3

    Contact the Office of the Texas Secretary of State for a copy of the certificate of formation, or download the form from the Secretary of State's website. Complete the form, providing the name of the company, contact information for the registered agent, a list of the managers of the company and the purpose of the company. While Texas does not require an operating agreement, drafting such a document, which explains how the company will be run, is advisable.

    Step 4

    Sign the form and submit two copies of it to the Office of the Texas Secretary of State, along with the $300 filing fee. Alternatively, submit the form online via the Secretary of State website. Register the company for state tax purposes. Tax registration does not carry a fee. A business may need a license to operate, depending on the type of business to be conducted. An attorney will be able to advise you on whether a license is required in your circumstances.

    About the Author

    Based in the United Kingdom, April Kohl has been writing since 1992, specializing in science and legal topics. Her work has appeared on the Second Life News Network website and in British Mensa's "LSQ" magazine. Kohl holds a Bachelor of Science in physics from Durham University and a diploma in English law from the Open University.

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