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Overview of Texas LLC Formation and Management
- A limited liability company (LLC) in Texas allows owners limited personal liability for debts or lawsuits.
- LLCs in Texas can continue perpetually.
- LLC profits and losses pass through to the owners to report on their personal tax returns.
- Husbands and wives can own an LLC together, reporting their share on separate tax returns.
- LLCs can have two or more owners called members who can be individuals or businesses.
Membership and Management Guidelines
- Members must notify remaining members to leave an LLC.
- Assets must be properly handled per withdrawal provisions.
- To check Texas LLC approval, call the Business Information Line or check online in around 2 weeks.
Taxation and Financial Matters
- LLCs do not pay taxes, members do.
- Texas charges LLCs a franchise tax.
- Most LLCs require a separate business bank account.
- Costs to file a Texas LLC are $300 plus a 2.7% fee.
- Partnerships, S corporations, and C corporations are LLC tax options.
Requirements and Processes for Forming a Texas LLC
- Requirements to form a Texas LLC include filing a Certificate, appointing an agent, and paying fees.
- An LLC name application costs $40.
- Forming an LLC involves reserving a name, appointing an agent, filing organization documents, obtaining an EIN, and opening an account.
- Time and cost depend on the state.
Managing and Renewing a Texas LLC
- To look up a Texas LLC, search on the Secretary of State website by name or number.
- If having employees and multiple owners, an LLC suits Texas business needs.
- Registering an LLC in Texas has low costs and a simple process, either online, by mail, or through a service.
- Steps include selecting a name, appointing an agent, filing forms, and paying fees.
