How to start an LLC in Texas
Texas is one of the best states to start a company in the US for its numerous tax incentives and business-friendly policies. Businesses in Texas can enjoy tax refunds by simply offering job opportunities to underprivileged communities and veterans. Moreover, starting an LLC in Texas can be even more advantageous as it is a rather simpler process and brings the same benefits as large organizations get to enjoy. LLCs in Texas also enjoy a higher revenue as the state imposes no state income tax on small to medium-sized businesses.
You can start an LLC in Texas by simply following the steps below:
Choose and Register a Business Name
Starting an LLC in Texas begins with registering a name for your business. However, you might need to think of more than one name for your business since the state only registers original names that nobody else uses in the present or has used in the past. You can see if the name you came up with is available through the Texas Secretary of State website. The business's name must also comply with the state rules for business names.
Take your time at this step to ensure you find a name you really like. The business name you decide and register must also be easy to pronounce and remember so it can create a higher recall value. If you face difficulty coming up with a name, use a business name generator or follow this guide to find a suitable name.
Get a Logo and P.O. Box Address
After registering the name, get a logo designed for your business. If you don’t have any experience in designing a logo, consider hiring a professional for the service. A professionally designed logo can make a huge impact on shaping your brand image.
You will also need a P.O. Box address where you can receive business mail. If you are starting an LLC in Texas from your home, a virtual mailbox can help maintain your privacy.
Name An Agent
LLCs in Texas require a registered agent who can handle business correspondence on behalf of the LLC. You can name either a firm or a person as the registered agent for your business. The registered agent must have a physical street address in Texas in both cases. The presence of a representative from the firm or the person you choose as the agent will also be required during business hours to file reports and receive documents from the Texas Secretary of State.
Naming a registered agent to establish an LLC takes place through the Texas Secretary of State website. You will fill out the form for naming the agent along with other documents, and the agent will accept the appointment by filing the consent to serve as a registered agent form.
File Certificate of Formation
This step includes collecting and submitting all the necessary details to establish your LLC. The details you will need to submit may include the business name, business address, registered agent name and address, the purpose of business, duration of business (it can be indefinite), names and addresses of members of the LLC, etc. You can file the Certificate of Formation online at the Texas Secretary of State website or hire a service that can do it for you.
Get an Employee Identification Number (EIN)
An employee Identification Number or EIN is essential for businesses to open a bank account, file, and pay taxes. If you decide to hire a service to start an LLC in Texas, you should get an EIN for your business as part of the process. However, if you carry out the process independently, you can contact Internal Revenue Service (IRS) to register your business with them and obtain an EIN.
Create an LLC Operating Agreement
An LLC operating agreement defines a framework for how the business will operate or run. It contains voting rights, governance, ownership, responsibilities, rules and regulations, and profit sharing. It also outlines the course of action for the business division in case one or more members want to leave the company. With all these details, an operating agreement acts as an instruction manual for the business.
You don’t need an operating agreement to start an LLC in Texas. However, it is highly beneficial to get one as it can protect the business and business owners during events and changes in the future.
Get a Website
The above steps will complete the legal process of starting an LLC in Texas. However, you also need to take the additional step of getting a website to make your business appear legitimate to the audience.
In today’s digital age, a website carries the same importance as a physical address for your business. Audiences search for everything they need online, and a well-designed website can significantly convert them into customers. While you can DIY the website for your business, it would be more beneficial if you utilize a service such as Trady.com.
Trady.com is the only website-building service dedicated to trades and home services companies. Building a website with Trady.com only takes a few minutes. It brings exclusive features like booking appointments and making payments online. These features make fulfilling audiences’ needs fast, easy, and efficient, resulting in a greater number of customers and higher profit for businesses.
The service also manages the website for you, so you won’t have to deal with scheduling, client management, follow-ups, generating invoices, etc. You can also sign up for its end-to-end marketing services to spread the word about your business more efficiently and gain more customers and higher profits. With these and many other features by Trady.com, you can be free to focus on what you do best.
Launching a website with Trady.com is also super cheap. Try the 14-day free trial by Trady.com to get started.
Starting an LLC in Texas is easy; maintaining and growing it, in the long run, is the real challenge. But with Trady.com, you can save considerable time, energy, and sources that you can invest where your business requires most.