Registration of LLCs
The decision on the business structure that you take for your company should be made in consultation with an attorney and a tax accountant. They will help you consider issues such as tax, management, transferability of ownership interests, liability, formality of operations and continuity.
A limited liability company (LLC) is neither a corporation nor a partnership, but it is a different type of entity with the powers of both a partnership and a corporation. The structure of LLC can be said to be like that of a general partnership but with limited liability.
Those who own an LLC are referred to as members, and they can be in the form of a partnership, trust, corporation, individual or other forms of legal entity. The member’s liability is limited to their investment in the LLC.
Requirements to Register An LLC In Huston Texas
In Texas, the creation of an LLC involves filing a certificate of formation with the Texas Secretary of State. The Secretary of State then gives you a form with the minimum state requirements. Once the filing is complete, a certificate of formation is given by SOSDirect. Below are some of the important requirements you have to meet when forming an LLC at Huston Texas.
- Registration
If you want to start an LLC in Texas, you should file a certificate of formation (form 205) with the Secretary of State. The form should have essential information including the LLC name and address, resident agent name and address, a statement that identifies the management type, the reason for the formation of the LLC, the organizer’s name and address. The form can be registered via fax, online or by mail.
- Fees
When submitting the completed certificate of formation, you will be required to file it together with the filing fee. Payment of the fees can be made through money order, personal check, credit card, or using LegalEse debit card. If you chose to make the payment using your credit card, you will be required to pay a convenience fee of 2.7% of the total charges,
- Time taken to process the documents
The forms and documents that are submitted for processing and filing are completed in three to five business days after the documents are received. However, if you want yours to be processed at an earlier time, there is a fee you have to pay for each document and this request should be accompanied by a written request for the expedited services.
- Naming rules
Before naming your LLC, you should ensure that the name is unique and not similar to another LLC’s name in the state. Select state agencies should approve the name, and the wordings must be correct to be approved by the Secretary of State.
- Formation requirements
If you plan to start an LLC with more than one member, there should be an operating agreement.
To be a registered agent, the company or person is expected to complete and sign form 401-A which is acceptance of consent form which is filed with the State Secretary.
Tips To Remember To Make Registration Process Quicker
Below are a few tips to remember that can make the registration process easier.
- Choose the right name
The name should end with the words ‘Limited Liability Company’ or its abbreviations. The name should also be approved by some state departments and agencies. To reserve a name, you will need to file form 501 and pay a non-refundable fee.
- Assign a resident agent
For one to serve as a registered agent, they must provide an acceptance of appointment and consent form 401-A to the State Secretary. The form should have the LLC name and a statement of consent from the person who seeks to be a registered as an agent agreeing to serve as one. It should also have the signature and name of the agent and the agreement date. To process the form, one usually pays a fee.
- Employer identification number (EIN) obtained from IRS
The employer identification number is sought if the LLC has more than two members. The EIN is obtained for tax purposes.
- Come up with an operating agreement
The LLC operating agreement is essential if the limited liability company has more than one member. The document might not be needed during the filling of other documents with the Secretary of State during registration, but it is needed when filing for the Texas tax license.
- Ensure you are aware of the legal obligations of the LLC
Limited liability companies are subjected to Texas franchise tax. It is a requirement for an LLC to submit an initial franchise report together with a public information report in the first year of its operation. For every year it continues its operation after the first year, the LLC is also required to file an annual franchise tax report together with a public information report. The manager of an LLC member signs these documents before they are submitted. The annual reports filing is done before May 15.
It is always advisable to seek a qualified attorney to help you register your LLC. A professional attorney will save you time and money as they have experience conducting the registration process. An attorney will also give you all the legal advice you might need for your business. If you live in Huston Texas and you are in need of a well-qualified, professional lawyer, contact RunRex to help you register your LLC and give you correct legal advice for your business.