Texas is one of the most business-friendly states in the US, so your venture’s chances of success are pretty high. And a single-member LLC (SMLLC) structure will not only ensure liability protection for you but also add credibility to your whole enterprise.
If you want to open an SMLLC in this jurisdiction, you should be aware of the unique regulations valid in the state. Our article will take you through how to create a single-member LLC in Texas in a stepwise manner.
File a Single-Member LLC in Texas by Sticking to This Simple Plan
Or delegate the formation job to a professional helper:
Table of Content
Limited liability companies are easy to set up. Formally, Texas single-member LLC registration is about state filing. Yet, maintaining and operating a company is more than registering a legal entity.
Launching a business is a multi-stage process. And we’ve made a step-by-step guide to help you open a single-member LLC in Texas without a hassle.
Each state has its own naming rules for LLCs, and Texas is not an exception. The naming requirements you’ll have to stick to in this state are as follows:
Should the chosen name version fail to match any of the above rules, your filing application will be rejected in Texas.
A registered agent (RA) is a law requirement for limited liability companies across the states, no matter if you file a single-member or a multi-member entity. So, you should appoint one in Texas before submitting your application.
You need to choose someone with a physical address in the state who will be permanently present under that address during normal business hours to handle official correspondence on behalf of your Texas SMLLC.
Taking into account the fact that you can designate anyone older than 18 years of age or a legal entity authorized to operate in TX, you’ll have the following RA options:
Our recommendation is one of Texas registered agent services. Though payable, it won’t cost you a fortune. Meanwhile, it will save your peace of mind and stand on guard for your company’s compliance.
At a legal level, creating a single-member LLC in Texas is about filing the Articles of Organization with the TX Secretary of State. It’s a kind of LLC passport that validates a company as an independent legal entity.
Secretary of State
P.O. Box 13697
Austin, TX 78711
James Earl Rudder Office Building
Austin, TX 78701
Many entrepreneurs would disregard this point when forming a single-member LLC in Texas. Yet, we strongly recommend that you treat it seriously and have it set during the business formation stage.
An Operating Agreement or Company Agreement in TX is not a statutory requirement. Yet, this document is a vital operating tool to have for the following reasons:
You can hire an attorney to complete the document for you or do it on your own by downloading one of the free online templates.
An Employer Identification Number (EIN) or Federal Tax ID is issued by the Internal Revenue Service for legal entities and has the same function as a Social Security Number for individuals.
An EIN is used to identify the company as a taxpayer and make it traceable for statutory and government authorities. You will need an EIN to do the following:
The IRS issues EINs for free. You can obtain one once your SMLLC is registered with the TX Secretary of State. You can apply for an EIN either online or by mail. Online filings are processed immediately.
In some states, a filing fee depends on the filing method you choose. However, the cost of a single-member LLC in Texas is $300, no matter how you submit your formation docs to the Secretary of State.
Some expenses that might add to your final payment list include:
|Name reservation if you need to put your desired business name on hold for a period of up to 120 days||$40|
|RA service annual subscription if you hire a dedicated assistant for your RA function||$50 to $300|
|Licensing charges to get must-have certifications for your business||Varies|
|DBA registration if you decide to run your enterprise under a name different from your registered business moniker||$25|
|Domain and URL registration to set up your online presence from the start||Varies|
When you’ve done with your Texas single-member LLC registration, there are three important steps you should take immediately after formation to launch your business on the right foot and make it operable:
When forming a single-member LLC in Texas, you will not only get rights and protections but also have certain obligations to keep your entity eligible. Those are compliance requirements you should observe such as: