The state of Texas is largely understood to be one of the best places in which you can register your LLC. Their tough state laws that enforce the protection of the members of an LLC’s in a personal capacity make it an attractive state in which to register your business.
The regulatory requirements of naming a Texas LLC
Choosing a name for your business can be an integral success factor for you and your business. When choosing what to name your company, we advise that you settle on a name that is unique, memorable and one that can grow alongside your company. There are, however, legal requirements to naming your LLC that must be adhered to.
Your name should be available.
Before you decide on a name for your LLC, you need to ensure that the name has not already been registered by another company. In Texas, you will need to search the Texas Comptroller Public Accounts website to verify that your name has not already been registered. Additionally, you will need to conduct a search online to make sure that the domain name you wish to use has not already been reserved. It is advisable to, when brainstorming some ideas of what you’ll name your company
Your name should include a clear indication that the entity is an LLC
All LLC’s in Texas are legally required to include some variation of an abbreviation at the end of its name. LLC, L.L.C., Limited, Ltd., Company or Co. are all considered valid words to include at the end of an LLC.
Your name should not attempt to mislead the public.
Your LLC name cannot include the words bank, bank and trust, trust, trust company without filing additional paperwork, as well as not being able to use any words that are related to any government agencies. This is to prevent companies from using a name that may mislead the public into thinking that the LLC is a different type of entity than it is.
Next, you should choose your registered agent.
Your LLC must appoint a managing agent and this person will serve as the sole point of contact between the business and the government. The company should – through the Certificate of Formation – clearly state the name, contact information and date of selection of the agent, as well as supply a valid business address through which they are able to contact them. This business address should not be a personal address of the agent or the company members but should be a separate address reserved exclusively for the business.
File the necessary paperwork
After choosing your name and selecting your agent, you will need to file the Texas LLC Certificate of Formation. This is a legal document that includes all of the information required by the state to register your LLC. The filing can be done online, in person or via post. It is also advisable to draw up a Texas LLC operating agreement in order to outline the business’s plans for future corporate governance. Once you have completed all of these steps, you should apply for an Employee Identification Number (EIN) with the IRS. Although the EIN is not always required, it is good practice to have one and will make filing you company taxes a much simpler process.
What are the costs of setting up an LLC in Texas?
Naming your company
Conducting a name search with the Texas Comptroller Public Accounts website will cost $1 per name search, once you have decided on a name, to register this, you will need to filing an Application for Reservation or Renewal of Reservation of an Entity Name and pay a filing fee of $40. To add another layer of protection to your business name, companies can file a trademark, which will require an additional feel of between $225 and $400. Although to search for available domain names is free, you will be required to pay for your chosen domain name. This can cost between $10 – $15 annually.
Filing to form your company
To file a Certificate of Formation will cost $300 and once your application has been filed, your business will be required to pay a formation fee of between $39 and $80.
Management fees and additional taxes
Your annual managing agent fees can be between $0 and $300 annually. Texas law also requires all businesses to pay Texas Franchise Tax and this can be done with the annual report free which is due in lieu of the federal report that most states require LLCs to file. The tax amount varies according to a business’s sales and gross and net profits. For additional details around filing an LLC in Texas, you can visit this site.
