Form a Texas LLC - Form an LLC in Texas – Sun makes Texas LLC formation easy!

Sun Document Filings can form a Texas LLC fast! Focus on forming your Texas LLC business plan and let us form your Texas LLC. Sun can form a Texas limited liablity company or register a Texas LLC correctly the first time. Let us make the Texas LLC formation process quick and painless for you by preparing and filing a Texas LLC Articles of Organization with the Texas Secretary of State on your behalf. Your time is better spent forming your Texas LLC business plan for a successful Texas LLC. Protect your assets and form a Texas single member LLC or a Texas multi-member LLC.

To form a Texas LLC online, click here to see the costs and time turnaround options for a Texas LLC.

How do you help me form a Texas LLC?

First, we check LLC name availability with the Texas Secretary of State. Second, we prepare a Texas LLC Articles of Organization. Third, we review your documents for completeness. Fourth, we will register a Texas LLC by filing a Texas LLC Articles of Organization with the Texas Secretary of State. Fifth, after the Texas Secretary of State files a Texas LLC Articles of Organization, we will return the filed document to you. We make forming a Texas LLC simple and fast!

What is a Texas LLC?

A Texas LLC or Texas limited liability company is a type of business entity that is independent of its owner(s). A Texas LLC can consist of one or more members which may be individuals, partnerships, trusts, estates, associations, corporations, other limited liablity companies (LLC), or other business entitites as allowed by the state of formation. The members of a Texas LLC are afforded limited liablity similar to shareholders of a corporation and are allowed pass-through taxation benefits that is comparable to a partnership. Forming a Texas LLC can be the best of both worlds.

What are the advantages of forming a Texas LLC?

A Texas LLC or Texas Limited Liability Company combines the advantages of a corporation and a partnership. The members of a Texas LLC are allowed limited liability protection of a Texas corporation with the pass-through taxation of a partnership. All personal assets of the members are protected from creditors for debt and from judgments against a Texas LLC. Provided a member did not use their personal assets to secure loans or personally guarantee the debt for a Texas LLC. Unlike a Sub-Chapter S Corporation whose shareholders are limited to 75, there is no limit to how many members a Texas LLC can have. For the flexibility and taxation benefits, LLC’s have become very desirable to business owners.

How do I decide if I should form a Texas LLC or Texas S corporation?

- Most business owners that decide to form a Texas limited liablity company (LLC) do so because of its flexibility in taxation.
- A Texas S corporation eliminates double taxation but it lacks the flexibility of a Texas LLC in distribution of income to the owners.
- A Texas LLC can have several classes of membership interests and can consist of one or more members (in most states) which may be individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, foreign nationals, other limited liability companies or other business entities.
- A Texas S corporation can only be owned my individuals, issue only one type of stock, and is limited to no more then 75 shareholders.
- For more information, view our Entity Comparison Table. The Entity Comparison Table will show the advantages and disadvantages of different types of business entities.
- If you decide to form a Texas S corporation instead of forming a Texas LLC, click here for incorporation services.

To form a Texas LLC online, click here to see the costs and time turnaround options for a Texas LLC.

Who controls or manages a Texas LLC?

A Texas LLC is owned and organized by its members. Members to a Texas LLC are the equivalent as partners are to a partnership or shareholders in a corporation. Members have the option of managing a Texas LLC themselves or if they prefer, they can choose to elect managers to operate a Texas LLC. Managers are agents of the company and have the authority to bind the company to third parties. The flexibility in management is one of the reasons LLC’s are so appealing.

How many people or business entities are required to form a Texas LLC?

In most states, only one entity or one person is required to form a Texas LLC. In terms of taxation, the IRS does recognize single member Texas LLC’s and allows pass-through taxation. Although the Internal Revenue Service allows one member Texas LLC’s with pass-through taxation, some states may not afford equal treatment to single member Texas LLC’s. To avoid any surprises, we recommend that you speak with your accountant or tax preparer to find out how the tax laws in your state would affect your single member Texas LLC prior to organization.

What titles are owners in a Texas LLC ?

A Texas LLC is allowed to have the titles member(s), manager(s), or manging members.

How is a Texas LLC taxed ?

At the Federal Level -

A Texas LLC may be classified for federal income tax purposes as a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), partnership or a corporation. If a Texas LLC has only one owner, it will automatically be considered to be a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), unless an election is made to be treated as a corporation. If a Texas LLC has two or more owners, it will automatically be considered to be a partnership unless an election is made to be treated as a corporation. If a Texas LLC does not elect its classification, a default classification of partnership (multi-member Texas LLC) or sole proprietorship (single member Texas LLC) will apply.

At the state level -

Your Texas LLC may be treated differently for tax purposes then at the federal level. Since each state is different, we recommend that you speak to your accountant or tax preparer who specializes in Texas tax law for specific tax questions.

How do I obtain an EIN or Employer Identification number or Tax Payer ID number for my Texas LLC?

After we complete a Texas LLC formation on your behalf, we offer supporting services. We can obtain an employer identification number (an EIN) for your Texas LLC. An EIN is required to open a bank account, hire employees, and to start business credit for your Texas LLC. If you purchase our premium package, EIN obtainment is included for your Texas LLC.

How do I obtain or prepare a Texas LLC operating agreement?

Often times, you can hire an attorney or paralegal to prepare the operating agreement for your Texas LLC but that could be very costly. If you purchase our premium package, Sun will prepare the initial operating agreement (standard language) for your Texas LLC and include meeting minutes (MS Word format) that you can prepare as needed.

To form a Texas LLC online, click here to see the costs and time turnaround options for a Texas LLC.

What is a Texas LLC operating agreement and why is it so important for my Texas LLC?

A Texas LLC operating agreement serves as a blueprint for your Texas LLC. The operating agreement contains the rights, privileges, and powers of the members and managers. A Texas LLC operating agreement will contain the names and addresses of each member and manager. A Texas LLC operating agreement will specifiy the percentage each member owns of a Texas LLC. A Texas LLC operating agreement will also indicate the capital contribution of each Texas LLC member. A Texas LLC operating agreement normally outlines how it can be amended or changed at a future date. Often there is mention of how long a Texas LLC is allowed to operate, the date of dissolution, or if a Texas LLC has perpetual existence until the members agree to dissolve a Texas LLC.

Another important part of a Texas LLC operating agreement is to create "rules" on how a Texas LLC can open a bank account, take out loans, write checks, enter into contracts, obtain business credit, and issue membership certificates to its members. As a Texas LLC member, the most important reason for an operating agreement besides that most states require one by law, is that it protects each members' personal interest, capital contributed, and a detailed outline of the rights and privledges each member is afforded.

What is a Texas LLC seal?

After a Texas LLC prepares its operating agreement or has Sun prepare a Texas LLC operating agreement, a Texas LLC will need a Texas LLC seal. What is a Texas LLC seal? A Texas LLC seal is a handheld device that imprints paper with a Texas LLC's name, state of formation, and date a Texas LLC was formed. Many banks and other lending institutes require a Texas LLC to possess and use a Texas LLC seal on business documents or loan papers. All Texas LLC kits that Sun sells contain a handheld Texas LLC seal embosser.

What is a Texas LLC kit?

A Texas LLC kit is typically a hardbound binder that contains all of a Texas LLC's important documents such as the Texas Articles of Organization, operating agreement, and meeting minutes. All of the Texas LLC kits that Sun sells include the Texas LLC's name hot stamped (professional imprint of the Texas LLC's name) on the spine of the kit. Most Texas LLC kits come with a slipcase to keep the binder safe. Some Texas LLC kits are made with a slipcase built in. The choice is yours.

Another important part of a Texas LLC kit is the membership certificates. All of the Texas LLC kits that Sun sells contain 20 custom membership certificates that include the Texas LLC's name, date and jurisdiction of formation, and the title of member (s) or manager (s) below the signature lines. If you have already formed your Texas LLC, you can order a Texas LLC kit by clicking here. We have a selection of high quality Texas LLC kits that come in array of styles and colors. Best of all, standard shipping is always free.

Now that you have formed your Texas LLC, obtained your EIN from the IRS, prepared the Texas LLC operating agreement, issued membership certificates, and used your Texas LLC seal embosser, it is time to verify which local city and/or county tax licenses your Texas LLC business will need. The best place to start is your city hall or county recorder's office. Take the time to verify your area's business licensing requirements. For those of you who plan to run your Texas LLC out of your home, check with your city or county to find out if a work at home permit is required. Once your licensing requirements are met, it is time to start operating your Texas LLC.

To form a Texas LLC online, click here to see the costs and time turnaround options for a Texas LLC.

We wish you the best with your Texas LLC business venture! Questions? 888 595-2747