It is often a wise choice to structure your new business venture as an LLC or Limited Liability Company. That’s not to suggest there’s anything wrong with choosing to be a corporation, partnership, or even a sole proprietor. We work with corporate clients all the time to ensure whatever structure they choose meets their business goals. That said, LLCs are a popular entity type because of their flexible management structure, pass-through taxation, and ease of setup.
Speaking of ease of setup, what are the steps to forming an LLC in Texas?
First Things First … What Is a Limited Liability Company (LLC)?
An LLC is often referred to as a hybrid business structure in that it combines the characteristics and benefits of a corporation, partnership, and sole proprietorship. Just a few of its benefits include liability protection, perpetual existence, and the fact that you can decide if you want to be taxed as an LLC or corporation.
Liability protection is often viewed as the biggest benefit of an LLC. What this means is that the formal corporate structure of the LLC protects its owners from company debts and liabilities. In other words, if you’re running your business in compliance with applicable laws, you can’t be personally pursued for repayment.
Owners of the LLC are called members and can be individuals, other corporations, partners, or any other commercial entity. LLCs are run by either members or managers.
How Do You Form an LLC in Texas?
- Visit with a business attorney at Christman | Daniell Attorneys
- Create a name for your LLC
- Select a registered agent (main point of contact)
- File the Certificate of Formation with the Secretary of State
- Set up an Operating Agreement
- Request a Federal EIN from the IRS
- Open a business account in the name of the LLC
Christman | Daniell Attorneys has helped hundreds of companies meet their business goals. When we sit down to talk about business formation, we will discuss your short-term and long-term goals. Every successful business venture comes down to asking one important question: What do you want to accomplish? We work to protect you and your interests every step of the way. We truly understand that there is no one-size-fits-all solution to forming a business. That’s why we will customize solutions to meet your exact needs.
Please call Christman | Daniell for your legal needs today!
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