A Texas LLC can operate either as a corporation and a partnership depending on how it is structured. While a limited liability company business structure is set by a federal law, the State of Texas chose to adopt the law, which allows businesses operating in Texas to decide to structure the business as an LLC. With the adoption of the law, Texas permits limited liability companies to choose a federal tax structure that operates as a corporation or as a partnership. Texas does not have a State income tax. To form a Texas LLC, it must be registered with the Texas Secretary of State and you will be set up an account with the Texas Comptroller of Public Accounts office to file an annual Texas franchise tax return by May 15th of each year.
The LLC is operated by its “Members” and the “Managing Member”. A member can be an individual, partnership, corporation, trust, or any other legal or commercial entity. Generally, the liability of the members is limited to their investment. The Members get the benefit of pass-through tax treatment much like partners in a partnership. As a result of federal tax classification rules, an LLC can achieve both structural flexibility and favorable tax treatment. Limiting risk is another important reason to form an LLC in Texas. In order to limit their personal risk, the managing member or members must make sure to keep their personal and business assets separate.
The Operating Agreement and By-Laws are important documents of the LLC, but they are not turned into the Texas Secretary of State’s office. An Operating Agreement allows you to structure the finances and how your Texas LLC will function with the other Members. The Operating Agreement and By-Laws will state how Members will divide profits, make business decisions, and handle the exit and arrival of Members.
A Series LLC is slightly different than the traditional LLC. The primary difference is a Series LLC has special language put into the certificate of formation and the operating agreement that enables it to create an unlimited number of “series” or sub-LLCs within the structure of a single LLC. This makes each series is an independent LLC under the main Texas Series LLC.
The main one is liability protection. The debts, liabilities, expenses, and obligations from each of the individual series are enforceable only against the assets of that series. They are not enforceable against the assets of the LLC generally or any other series and vice versa.
The Texas Series LLC provides a means of insulating the assets of one series from the liabilities and obligations of the LLC and the other series which is a significant advantage over a traditional LLC in which all assets would be available to satisfy the liabilities and obligations of the LLC. The Texas Series LLC can be the perfect entity choice for a real estate investor or someone that has multiple large assets or lines of business.
The cost is the same for us to set up an initial Texas Series LLC as a regular Texas LLC.
A Texas LLC is formed by filing a Certificate of Formation with the Texas Secretary of State. You can file it by mail or online using SOSDirect which is provided through Texas Secretary of State’s website.
The State filing fee is $300.
Our service provides the easiest and most affordable way to form a Texas LLC (limited liability company) that will get you up and running as quickly as possible. We are a local, Texas-based incorporation service that provides unlimited customer support during the process. Our support continues so long as we are the Texas registered agent on file. Just click the large red button below to get started. If you have any questions with the form or the process please call us or use the contact form. Our form is far less complicated and intimidating than trying to complete the one yourself on the Texas Secretary of State’s website.
Once you submit our online form with your payment, the following is our process:
Texas LLC Formation one-time $375 includes:
Processing usually takes 2-3 business days to complete!
Click the red button below or on the right hand side of the page will take you to a secured sign up form to get started!
Assumed Name Certificates:
These are DBA’s placed under your Texas corporation and we process them for $75/each.
Texas Comptroller of Public Accounts office filing requirement by May 15th of every year:
Texas Franchise Tax Return
You can use the link below to review the Texas Secretary of State’s business filing web page to
see other valuable information about forming a Texas LLC: