Legal Compliance For LLCs In Texas
Before you begin any business, the proper thing to do is discover everything about it. Your research should also cover legal aspects so you don’t have a run-in with the law. If you want to start an LLC in Texas, this article has listed the relevant requirements in this State. Operating your Limited Liability Company (LLC) won’t be difficult if you can comply with them.
Forming and Registering Your LLC in Texas
You must file certain documents before beginning your LLC in the Lone Star State. Usually, the State of Texas makes it mandatory for business owners to file a Certificate of Formation. You must file it with the Secretary of State, and it should state all the details about your LLC. This includes your business name, company objectives, organizational structure, and registered agent. Also, you must choose a unique name with no one associated with any other legal business in Texas. You can do this by doing a name availability search to comply with Texas rules.
Legal Requirements For LLC in Texas
In addition to filing your certificate of formation, there are other requirements you should learn. There are small business guides where you can find information on Texas LLC legal requirements. Texas will ask for the following for any LLC within its territory:
- Operating Agreement
Although it isn’t compulsory in Texas that your LLC should have an operating agreement, experts usually suggest it. This document contains detailed rules that guide the LLC’s operations. For instance, it outlines the voting procedure, member roles, and profit share for company shareholders. Ensure that your business has an operating agreement that aligns with what you do.
- Registered Agent Requirement
It would be best if you appointed a registered agent in Texas who will be responsible for your legal compliance. They collect legal documents and other official notices on your LLC’s behalf. You should choose a registered agent who has a physical address in Texas. Also, they should be able to inform you about the status of your legal compliance with the authorities.
- Tax Obligations
Another legal requirement for LLCs in Texas is the payment of franchise taxes. You should know what tax applies to your business and ensure you meet up with them. Usually, the Texas Comptroller of Tax Matters oversees tax matters for LLCs. Please find out about the payments due and their deadlines, and see your legal status on these tax affairs.
- Annual Filings
Every LLC in Texas must file their annual returns at the Comptroller’s office. Your annual report must follow the requirements containing updates on your activities. This report differs from the franchise tax, and some penalties come with it. As such, it is mandatory to provide your annual reports if you want to remain in good legal standing.
- Employer Identification Number (EIN)
One of the things you will be expected to provide in Texas is an employer identification number, which you can get from the IRS. You’ll use this number to open a corporate bank account, recruit staff, and pay taxes. Obtaining the EIN at the IRS is usually free; you can request one online.
Final Thoughts
Finally, these are some of the legal compliance for LLCs in Texas. Ensure you know the laws that apply and keep up with new requirements. You won’t face any issues if you adhere to their rules in Texas. It’s best to seek legal advice from professionals when setting up your LLC in Texas.
