Forming an LLC in Texas

Name Your LLC

First and foremost, you need to name your business. As stated above, the name should include Limited Liability Company, Ltd. Co., L.L.C, L.C., or Limited Company. Also, you must avoid using official terms like Treasury, State Department, FBI, CIA, and others. You should also steer clear of names that resemble existing businesses, especially those in your industry or locality, as it can lead to trademark issues and consumer confusion. If you wish to use terms like bank, university, attorney, or doctor, ensure that you meet Texas State Government requirements for such entities before adding them to your LLC's name.

File the Texas LLC Formation Form With the State

The most important document required to establish your LLC is Form 205, also known as the "Certificate of Formation—Limited Liability Company." This form can be downloaded or completed and submitted electronically through the Secretary of State's website. The filing fee for this form is $300.

If your LLC was established outside of Texas and wishes to operate within the state, you must file Form 304, an "Application for Registration of a Foreign Limited Liability Company." This form can be accessed through the Secretary of State's website as well and has a filing fee of $750.

When submitting physical copies of completed forms, please mail two duplicates to P.O. Box 13697, Austin, Texas 78711-3697.

Obtain a Texas LLC Employer Identification Number (EIN)

Obtaining an Employer Identification Number (EIN) for your Texas LLC is free of charge. This nine-digit number is assigned by the IRS and serves as a unique identifier for your LLC when opening bank or credit accounts, as well as when filing taxes. Obtaining an EIN is a crucial step in setting up your Texas LLC.

You can apply for an EIN for free directly through the IRS. The application process is brief, taking only a few minutes to complete, and your EIN will be issued immediately.