How to Start an LLC in Texas

Posted on October 08, 2025 by Patricia Martin in How to

To start an LLC in Texas, we should first choose a unique business name and check its availability. Next, we need to designate a registered agent who will handle legal documents. Afterward, we’ll file the Certificate of Formation with the Texas Secretary of State and pay the required fees. It’s important to create an operating agreement to outline our management structure. We must also obtain any necessary licenses and permits. There’s more to learn about maintaining our LLC effectively.

For more detailed information about this topic, you can read our comprehensive guide on How to Start an LLC in Texas.

Choose a Unique Business Name

When we commence on the journey of forming an LLC in Texas, one of the first vital steps we must take is choosing a unique business name. It's important that this name reflects our business identity and complies with Texas regulations. We should first check for business name availability through the Texas Secretary of State’s website to guarantee no other entity is using our desired name. Additionally, we must consider trademark considerations; conducting a trademark search can help us avoid potential legal issues down the line. A name that is both unique and compliant will not only establish our brand but also protect our interests as we move forward in our entrepreneurial journey.

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Designate a Registered Agent

As we move forward in establishing our LLC in Texas, it’s vital to designate a registered agent. This individual or entity plays an important role in receiving legal documents and ensuring we remain compliant with state regulations. Choosing the right agent involves understanding their responsibilities and how they contribute to our business's legal standing.

Role of Registered Agent

A registered agent serves as an indispensable link between our LLC and the state of Texas. This role is critical to guarantee compliance with legal requirements and maintain good standing. Understanding the registered agent duties is essential for our LLC's success. Here are three key responsibilities:

  1. Receive Legal Documents*: The registered agent must accept *service of process, including lawsuits and subpoenas.
  2. Maintain Compliance: They help guarantee we meet state filing deadlines by receiving official correspondence from the state.
  3. Provide a Reliable Address****: The registered agent must have a physical address in Texas, offering a stable point of contact for our LLC.

In our registered agent selection, we must prioritize reliability and professionalism to uphold our business's integrity.

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Choosing the Right Agent

How can we guarantee that our LLC operates smoothly and remains compliant with state regulations? One critical step is choosing the right agent. A registered agent acts as our LLC's official point of contact for legal documents and notifications. When selecting an agent, we must ascertain they meet specific qualifications. They should be a Texas resident or a business entity authorized to do business in Texas. Additionally, the agent must be available during regular business hours to receive important documents promptly. By carefully evaluating potential agents and their qualifications, we can ensure our LLC remains in good standing and avoids unnecessary delays or complications. This choice is integral to our LLC's long-term success.

Responsibilities and Compliance Requirements

When we designate a registered agent for our LLC, it’s essential to understand the responsibilities and compliance requirements that come with this role. The registered agent acts as our official point of contact for legal documents and notifications, guaranteeing we meet our business obligations. Failing to comply can lead to compliance penalties that may adversely affect our LLC. Here are three key responsibilities we should keep in mind:

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  1. Availability: The agent must be accessible during regular business hours to receive important documents.
  2. Documentation: They must maintain accurate records of all legal notices and communications.
  3. Timeliness: Our agent must promptly forward documents to us to guarantee we meet deadlines related to our LLC’s compliance.

File the Certificate of Formation

Filing the Certificate of Formation is an essential step in establishing our LLC in Texas. This document officially registers our business entity with the state and initiates the formation process. To begin, we’ll need to complete the Texas Certificate of Formation form, which requires vital information such as our LLC's name, registered agent, and management structure. Once we’ve filled out the form, it’s time for the certificate filing. We can submit the application online or via mail to the Texas Secretary of State, along with the required filing fee. After submission, we should allow some processing time before receiving confirmation of our LLC's formation. Proper completion of this step is critical for our business’s legal standing.

Create an Operating Agreement

After successfully filing the Certificate of Formation, the next important step is to create an Operating Agreement for our LLC. This document is essential as it outlines the management structure and operational procedures. Here are some operating agreement essentials we should consider:

  1. Management Structure: Define whether our LLC will be member-managed or manager-managed.
  2. Profit Distribution: Establish how profits and losses will be distributed among members.
  3. Decision-Making Process: Outline the procedures for making significant decisions and resolving disputes.

While drafting this agreement, we should follow specific drafting guidelines to guarantee clarity and thoroughness. A well-crafted Operating Agreement not only protects our interests but also helps to prevent misunderstandings in the future.

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Obtain Necessary Licenses and Permits

Before we can fully operate our LLC in Texas, we must obtain the necessary licenses and permits relevant to our specific business activities. This step is essential for compliance with local regulations that govern our industry. We should begin by researching the specific licenses required for our business type, as these can vary considerably depending on our field. For example, if we’re starting a restaurant, we'll need food service permits, while a construction business may require industry-specific permits. We must guarantee that we apply for these licenses through the appropriate state and local agencies. By taking these steps, we can avoid potential fines and make sure that our LLC operates legally and successfully within Texas.

Comply With Ongoing Requirements

As we manage our LLC in Texas, it’s essential to comply with ongoing requirements to maintain our business's good standing. We must file annual franchise tax reports and guarantee that we have a registered agent in place at all times. Staying on top of these obligations will help us avoid penalties and keep our LLC operational.

Annual Franchise Tax Reports

While managing our LLC in Texas, it’s essential to stay compliant with the state’s requirements, particularly regarding the Annual Franchise Tax Reports. Failure to meet franchise tax deadlines can result in severe tax report penalties, which we want to avoid. Here are some key steps we should follow:

  1. Determine Eligibility: Assess if our LLC qualifies for the no-tax-due threshold to simplify our reporting process.
  2. File Reports: Submit our Annual Franchise Tax Report and Public Information Report by the due date to guarantee compliance.
  3. Pay Taxes: If applicable, remit any franchise taxes owed, as this prevents penalties and maintains our good standing.

Maintain Registered Agent Status

To guarantee our LLC in Texas remains compliant, we must diligently maintain our registered agent status. The registered agent serves as our official point of contact for legal and tax documents, making it essential for confirming the importance of continuity in our business operations. We need to verify that our agent meets the necessary qualifications, which typically include being a Texas resident or a business entity authorized to conduct business in Texas. Regularly review our registered agent’s information to confirm it’s current, as any changes must be reported to the Texas Secretary of State. If we decide to change our agent, we must complete the appropriate forms and pay any required fees to maintain our compliance effectively.

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