How To Register For Llc Without Going Through Website
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A limited liability visitor (LLC) is a blazon of concern well suited to many smaller enterprises. It allows an possessor to limit personal liability in the finances of the company. If someone sues the company, the owners won't lose all their personal assets. They are only financially accountable for their investment in the business. Forming an LLC also provides some flexibility in how the company runs. In Texas, LLCs can be formed easily and inexpensively.[1] Federal and state law provide many tax advantages to LLCs. For instance, the LLC itself does not pay taxes; rather, the business organisation's cyberspace income is passed through to the owners who report information technology on their personal income forms.
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Choose a proper name. The kickoff pace in starting an LLC is choosing a legal name for it. Pick whatsoever name you lot like, but continue in listen that there are a few restrictions and rules about the name y'all cull.[2]
- Try to make your proper name unique. The secretary of state will not allow y'all to duplicate the name of another business organisation. Sometimes they volition not even allow one that is similar to another business organisation.[3] The secretary of state volition make this determination on a instance-by-case ground.
- The name cannot include profanity or language that is obscene, such every bit explicit sexual language. It also may not comprise words that would misfile it with a federal agency, such as the CIA or IRS.
- In Texas, LLCs must include "LLC," "L.L.C.," or "Limited Liability Company" at the end of their proper name. Brand sure to include this in your proper noun registration.[4] For Example, you might proper noun your LLC "Bagelcorp, LLC."
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Cheque the name's availability. Employ the Texas Secretary of State's website to brand sure no one else has already registered an LLC under the name you've selected.
- To search online for names, you must request an account on the Secretary of State Direct website.[5] Anyone may request an account, and the request should be processed in xv minutes during normal business hours.
- Once your account is activated, you can search the database to make certain your proper name isn't taken. Each search costs ane dollar.
- Besides cheque for the URL availability at the same time. A website is a fundamental chemical element of marketing now. To bank check for the availability of a URL, you tin can utilize one of many domain search tools on the internet.
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Search causeless business organisation names. The public or "assumed" proper noun of your business may non match the legal name of your registered LLC. Make sure there are no duplicates to the business organization name you would like to use.
- An "causeless" name is 1 that you will use in day to day business organization operations. For case, you might have registered your LLC as "Bagelcorp, LLC." But, the name of the shop you desire open might be "Bob's Big Bagels." This is as well known as a "doing business equally" or "DBA" name.[vi]
- More than 1 concern tin legally apply the same assumed name. For best results though, you should use an original name that no i else is using.
- If you and another company employ the same assumed name, this may confuse customers. If you use an assumed name that is the aforementioned every bit some other visitor'due south legal name, this may too create problems. Y'all may lose valuable business to a competitor because you have the aforementioned name.
- If there are ii unlike stores called Bob's Big Bagels, for example, information technology may exist hard for consumers to tell them autonomously.
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Reserve your legal business concern name. File your legal visitor proper noun with the county clerk'southward office, or online at the Texas Secretary of State Direct website.[vii]
- Businesses operating in Texas must reserve their legal name with the Secretarial assistant of Land. This allows the state and other interested persons to find and store information on the business.
- To file online or in person, you will demand to provide the name of the company and the business owner or owners' names. You volition likewise need to describe the type of business concern (in this case an LLC) and the canton in Texas in which you operate.
- You lot volition also demand to include your fee payment, either by check or cash, or with a credit carte if filled out online. To register a proper name, you must pay $twoscore.00
- Filing for a name registration will prevent any other business from filing under your called name. Your business concern cannot file nether a proper noun that is already registered.[8]
- If you plan on doing business concern under an assumed proper name rather than your legal proper noun, you will also need to file an assumed proper noun certificate with SOS direct. The secretarial assistant of land charges $25 per document. The county you live in may also accuse a fee.[9]
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Consider trademarking your name. If your name is original or creative, you may want to consider registering it as a trademark.[10]
- A trademark can distinguish your product or service from those of competitors. Information technology can also protect y'all from trademark infringement by other companies.
- For example, a trademark volition allow yous to concord a domain as yours. It also protects other intellectual property related to your business.
- Yous can trademark your business proper name through the U.S. Patent and Trademark office. Visit their website and fill out a form. The form will require you to provide information about your business organization. Yous will also demand to pay a fee of between $275 and $325 to register your trademark.[11]
- If trademark police confuses you, feel free to consult with a trademark lawyer, who can assure that your application is accepted while also helping you avoid potential legal liability.
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Determine who your members and lath are. All owners of an LLC are considered members. All the same, an LLC can exist run by a single private, or by a lath.[12]
- The individuals who are authorized to human activity on behalf of the LLC are said to have "governing authority." They are the managers of the business concern.[xiii] The managers do non have to be members of the LLC.
- How many people have governing say-so and who those people are is up to you and the other members. It is a conclusion you will need to make before filling out your certificate of germination.
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Draft an operating understanding. An operating agreement outlines your visitor's policies and procedures. Although not required past Texas police, an operating agreement is helpful at clarifying the exact agreements between members.
- Begin the operating understanding past stating the purpose of the business, eastward.yard., to offering legal services or to sell cosmetics.[14]
- Define the members' powers and duties. You can outline the mean solar day-to-day responsibilities of each fellow member. You should also designate each member a pct of ownership.
- Assign bookkeeping responsibilities. Because financial accounting is and so critical to a business organization's success, you should clarify and consul who will have responsibleness for bank check writing, distributing profits, and bookkeeping.[15]
- Clarify process for a fellow member's withdrawal. Members may leave the LLC or die. A procedure should be put in place for what happens to the member's shares. For example, the remaining members may hold to purchase the shares.
- Found dissolution procedures. Not every visitor lives forever. Yous should specify when and how the LLC tin be dissolved. For instance, you might decide that an LLC can be dissolved by a majority vote of the board and that the profits of the LLC will exist divided at the dissolution according to share ownership.
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Detect a registered amanuensis. You lot must name a registered agent for the company on your LLC application. The agent is the person who volition be contacted in the case of a lawsuit or if taxes are owed.[xvi]
- The registered agent tin can be an individual resident or other entity that is registered to exercise business in Texas. Usually, one of the partners of the LLC volition act every bit the agent.
- You can besides rent an agent. This is useful if the business organisation is not located in Texas. To observe a qualified amanuensis, you lot can contact ane of the "Big Four" agents, which operate nationally: InCorp Services, Corporation Service Visitor, CT Corporation, or National Registered Agents.[17]
- The website "Best Registered Agents" gathers fee data and consumer reviews for over 25 agents working in Texas.
- The express liability company cannot human activity as its ain registered agent.
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Prepare a certificate of formation for an LLC. The State of Texas requires you to file this form, which includes articles of system. Once you've registered your name, submit this form and pay the fee.[18]
- You tin discover a document of formation awarding on the Texas Secretary of State website.[19]
- You volition demand to enter the visitor proper noun and legal accost. You'll also have to fill out the business purpose, names of members and full general business structure.
- The manufactures of organization is a document that lays out the corporate construction of your LLC. It specifies who the partners volition be and who will sit on the lath of the company. This document is also known as the articles of incorporation.[20]
- You may print the form out or apply the online system to file it. If you lot choose to impress and transport in the form, you may deliver it by mail to P.O. Box 13697, Austin, Texas 78711-3697. You can likewise fax information technology (512) 463-5709. Or, y'all tin can deliver it person to the James Earl Rudder Office Building, 1019 Brazos, Austin, Texas 78701.
- The filing fee for a document of formation is $300.[21] You will have to pay an additional fee if you file online.
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Obtain any required local licenses. License requirements will vary according to the county in Texas. Contact your county clerk's role to determine if y'all need whatsoever licenses or permits for your type of business.[22]
- For example, if yous are opening a restaurant, you must accept the applicable licenses from the health department.
- The Bedchamber of Commerce likewise volition accept information on what type of licenses you need, how to apply for them, and what the fees will be.[23]
- You also may consult the Texas Department of Licensing and Regulation for more than data. They volition also have applications for licenses. For example, you can use for or renew an electrician's license online through this department. Only click on "occupational licenses" and choose your occupation. Fees can paid past credit bill of fare.
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Employ for an employee identification number. An employee identification number (EIN) is an assigned number for IRS purposes. Information technology is similar to a social security number.[24]
- Small business and corporations use EINs to account for employee tax withholdings. Yous must have an EIN when setting up an LLC.
- Visit the Internal Acquirement Service (IRS) website to apply for an EIN.[25] Click on "Utilize for an EIN online" in the left corner. Then, read the guidelines and click on "apply now."
- To employ for an EIN you'll need to fill out an online class and enter several pieces of information. You volition need to provide the name and address of your LLC. Y'all will also need to include the name and social security number of the owner or managing fellow member. Finally, you will need to enter information almost the members of the LLC and the services it provides.
- Alternatively, you lot may impress off and postal service the appropriate form to the IRS.
- There is no charge for the application if you go directly through the IRS.
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Pay franchise tax. Texas requires that LLCs pay a franchise tax in social club to operate.[26] Y'all should visit the Texas Comptroller of Public Accounts website for information nigh how to pay.
- You can register you company online or by press off and completing a PDF.
- Tax rates vary, simply generally companies pay a 1% tax.[27]
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Open up a banking company account for your LLC. The terminal pace of setting up your LLC is to open a bank business relationship for it. After you've washed this, you tin can outset doing concern.
- Yous will demand to have your EIN before opening an account.[28]
- Ask the depository financial institution if you lot will demand to present other documentation to open the account. Banks in Texas may vary in their requirements. For example, yous might demand to bring your document of formation or business license.
- Consult your bank of pick about the options on your account that will exist all-time suited to your business needs. For instance, you may demand overdraft protection or prefer to concur a checking account. Or, if you'll be depositing a lot of coin, you also may want to consider an involvement-bearing account.
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Be sure to familiarize yourself with Texas tax laws regarding express liability companies. The information you need is available online and complimentary of charge. Knowing the police is an of import mode to protect yourself and your new business from lawsuits and other legal problems.
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About This Article
Article Summary X
To create an LLC in Texas, offset by filing your business name at the county clerk's office, or online at the Texas Secretarial assistant of State website. Next, file a certificate of formation online, or by mailing, faxing, or delivering the printed form in person to the Secretary of State's part. Additionally, obtain any required local licenses, such every bit a food service license or occupational license. Finally, apply for an EIN number with the IRS, pay the franchise taxation to the Texas Comptroller's office, and open a depository financial institution account for your LLC. For more advice from our Legal reviewer, including how to protect your business proper noun from trademark infringement, keep reading!
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