Step 1: Name Your Texas LLC

Before your business can be registered, you need to name it. Your Texas LLC name should include the words “limited liability company,” “limited company,” or an abbreviation like “LLC.”

The name must be “distinguishable” from other names already registered in Texas, so it can’t be the same or very similar as a name that already exists. Check the Texas Taxable Entity Search to find out if your name is available.

In addition, your Texas name can’t:

• Contain any word or phrase that implies the entity is engaged in business it’s not authorized to pursue.
• Falsely imply the LLC is affiliated with a governmental entity.

Do I need to trademark my business name in Texas?

You can trademark your name at the state level, but to really cover your bases, you need to check and see if it’s been registered as a federal trademark. If someone has registered a federal trademark for the same name you want in Texas, that person could potentially sue your business.

To ensure brand continuity, you should do one more thing once you settle on a name for your LLC: reserve a domain name. If you don’t do it now, someone else could get to your preferred domain name first. If that happens, your entire branding strategy may need a fresh start, and that’s frustrating. To create a cohesive online presence, reserve your domain name ASAP.

When you hire us to form your Texas LLC, we’ll register your domain name at no extra cost. We’ll also give you three free months of email and website services. If you want to add a federal trademark, we have an attorney-led trademark service that can help you with that as well.

Step 2: Choose a Registered Agent

The second step to starting your Texas LLC is choosing a Texas registered agent. Texas LLCs are required to maintain a registered agent as long as they’re in business.

A registered agent is a person or entity authorized to accept legal mail – including lawsuits – on a company’s behalf. The registered agent must then promptly forward any legal summons they get to the company’s owners, so it’s not a job that you want to give just anyone.

A Texas registered agent is required to live in the state and have a physical Texas address where they can receive legal mail. Entities who act as registered agents must also be authorized to do business in the state.

Can I be my own registered agent in Texas?

You can act as your own registered agent, but you must consent to this appointment and be available Monday through Friday during normal business hours to accept documents.

Step 3: File Certificate of Formation

When you file a Certificate of Formation, you’re officially forming your LLC. Be sure you fill out everything properly before submitting it to the Texas Secretary of State.

You can file online, by mail, or in person. There’s a filing fee of $300, and you must include the following information.

Business name: Make sure to include an identifier like “Limited Liability Company” or “LLC.”

Registered agent name: You can list a registered agent service (like us) or an individual.

Registered agent office: List a physical address here. The business address of the registered agent is also known as a registered office.

Governing authority: Check a box indicating if your LLC will have managers or not. If you have managers, those managers will be in charge of the company’s day-to-day operations. If you don’t, then your LLC will be member-managed.

Initial members: List the names and address of each initial member.

Franchise tax mailing address: Provide a mailing address for the state to send documents about the Texas franchise tax.

Organizer: List the name and address of the LLC’s organizer, aka the person submitting this document.

Effective filing date: You can make your LLC effective once the Texas Secretary of State files it, or you can choose a later date.

Organizer signature: This signature also affirms that your registered agent accepts their appointment.

Step 4: Set Up Business Operations

Once Texas approves your formation paperwork, you’ll have a registered LLC. Yet there’s still work to do to set your business up properly and protect your company’s limited liability.

Draft an operating agreement: An operating agreement is a handbook for how your business will operate. It covers everything from your LLC’s management structure to how membership interests are transferred. This is an internal document, so you don’t need to file it with the state. But you should bring a copy of your operating agreement when you go to the bank to open an account.

Obtain an EIN: The majority of LLCs will need an Employer Identification Number (EIN) to do things like open a business bank account and hire employees. However, if you’re forming a single-member LLC, you can opt to use your Social Security number instead, though it’s a less secure option than an EIN.

Open a business bank account: Separating your business finances and personal finances is crucial. Unless you open a business bank account, you risk losing the personal asset protection that makes LLCs so valuable.

Get business licensing or permits: A general business license is not required for Texas LLCs. But you may need a license, certificate, or registration, depending on your type of business. Check the Texas Business Licenses and Permit Guide for more information.

Step 5: File BOI Report

As of 2024, federal law requires most businesses to file a Beneficial Ownership Information (BOI Report) as of 2024. The BOI Report is designed to fight fraud and money laundering.

When filling out the BOI Report, you’ll have to list information about the company’s beneficial owners, aka the people with significant control or influence over your LLC. Additionally, if your LLC was formed after January 1, 2024, you must also provide information about the person or entity who filed your LLC’s formation paperwork.

Don’t feel like doing the BOI Report yourself? We can file your BOI Report for you when you hire us to form your Texas LLC.