Hire a Business Attorney for LLC
A business Attorney for LLC helps with the legal issues of a limited liability company. A limited liability company is a type of entity structure that ensures its members are asset protected and have operational flexibility. Limited liability companies may sound hard to form but are actually relatively easy and affordable to develop in Texas with the help of an experienced business attorney. Similar to other states, Texas has particular requirements entirely different from other states hence the need for professional help. Generally, interested parties are required to register with the Secretary of State by paying certain regulated fees, filing required forms and meeting the naming and formation standards. The formation of a LLC is one of the important issue that the attorney have to handle. Here are some of the requirements for forming a limited liability company successfully that a business Attorney for LLC should help you achieve.
Registration
Parties interested in starting a limited liability company in Texas must register for a Certificate of Formation with the Secretary of State. You may go forward as an individual seeking to start a limited liability company. The form includes details such as the name and address of the limited liability company, the address and name of the agent, a declaration quoting the type of management and led by who, that is; member-managed, the address and name of organizers, the purpose of the limited liability company and its possible dissolution date if planned. Be sure to include the filing fee otherwise you will not have your limited liability company processed. You may register by fax, by mail or online depending on what fits your convenience.
Forms And Fees
While submitting a filled certificate of Formation, so should one submit a filing fee. Payment is usually made via money order, personal cheque, LegalEase, and debit or credit card. It should be noted that all credit card payments are subject to an additional fee of 2.7% of the total sum charged.
Timeline
The duration required to process the documents submitted should take longest five business days upon receipt of the certificate of formation and filing fee.
Naming requirements
The naming standards only suggest that one should make sure that the limited liability company’s name is distinguishable from other limited liability companies in Texas. The name should fit a specific criterion which includes meet a certain number of words and be approved by the state agencies in order to be approved by the Texas Secretary State. A second option will have you calling the Secretary of State to have the name in your mind checked if it is taken.
Formation requirements
A limited liability company with more than one member will strongly be advised to settle on the operations and settlement among its members. For one to serve as a registered agent, the company or individual responsible must complete an acceptance consent known as Form 401-A which is signed by the registered agent and then forwarded to the Secretary of State.
Before you begin the registration process, you could check in with your business formation lawyer to ascertain that your business will best thrive as a limited liability company. Either way, you could research on the benefits of a limited liability company and decide if it’s the best option for you.
Once you have decided on the name of the company and ensured that it is unique in the State of Texas, you can go ahead with the next step. You will need to process an Employer Identification Number for all the members of the limited liability company from the IRS. This is necessary for tax purposes.
Talk to your attorney about drafting an operating agreement that will protect all your interests. This document is not included in the filing documents mainly forwarded to the Secretary of State. However, the limited liability company operating agreement is usually submitted when filing for the tax license. Some of these steps are crucial and may be skipped unaware if not guided by a lawyer.
On a light note, limited liability companies are subject to the Texas franchise tax. A limited liability company must submit an initial franchise report in their first year together with a public information report. The process is filed every year before May 15 in Texas. All reports must be signed by the manager or an official member of the company.
Cost
There is a primary fee for setting up a limited liability company in Texas which is the filing fee for the Certificate of Formation that costs $300. If you require expedited processing of the form, you will have to fork out an additional $25. The filing fee is normally nonrefundable. The fee set for filing the Acceptance of Consent is usually at $15 for a profit-making Limited Liability Company and $5 for a nonprofit making Limited Liability Company. When filing a Name Reservation process, this will cost you $40.
Taxes
Just like corporations, Limited liability companies are subject to federal income tax classifications in Texas. In relation to what kind of taxation your company opts to go for, you will have various federal tax responsibilities.
Our experts at the RunRex will be glad to guide and counsel you through every step of the business startup process. Let us help you.