Texas has one of the most comprehensive laws when it comes to business organizations. The Texas Limited Liability Company is the state's most popular legal entity and it formed close to 70,000 of them in 2007.
Within the State of Texas, there are 4 distinct types of LLCs that can be established.
CREATING A DOMESTIC TEXAS LLC
A Domestic Limited Liability Company is used by small businesses and joint ventures. Provided the LLC is formed for a legal purpose, it has very few legal restrictions on what the business must be. This flexibility makes it the most popular LLS in Texas.
While it can have a perpetual life and be used for many reasons, it is important that your formation documents strictly comply with the Texas LLC requirements when creating one. So be sure you use a reputable LLC services provider to handle this.
2. Professional Texas Limited Liability Company
The Texas LLC Act has specific provisions enabling the creation of a professional LLC entity to provide licensed professional services. This kind of entity has more limitations in that the business purpose is limited to providing specific types of licensed services and owners of the business entity usually have to be professionals licensed to provide the relevant service.
CREATING A NON-PROFIT TEXAS LLC
Unlike most other states, Texas specifically allows for a non-profit Texas limited liability company. These are similar to nonprofit corporations but you get the benefit of lesser formalities and a more flexible legal entity. Purposes include charitable, educational, and religious ones.
It should be noted that tax exempt status is not implied by the formation of a non-profit LLC in the State of Texas. An accountant can help non-profit organizations choose the correct tax elections in regard to tax exempt status.
4. Foreign Limited Liability Company in the State of Texas
A foreign LLC is one that is organized in another state but desires to conduct business in Texas. There is an entire section of the Texas LLC laws that address the regulation of a foreign LLC. First, it needs to file for a certificate of authority with the Texas Secretary of State.
While business conducted by Foreign LLCs in Texas is regulated by the state, the Foreign LLC is still governed by and subject to the rules and regulations of the state in which the LLC was initially established. - 15246
Within the State of Texas, there are 4 distinct types of LLCs that can be established.
CREATING A DOMESTIC TEXAS LLC
A Domestic Limited Liability Company is used by small businesses and joint ventures. Provided the LLC is formed for a legal purpose, it has very few legal restrictions on what the business must be. This flexibility makes it the most popular LLS in Texas.
While it can have a perpetual life and be used for many reasons, it is important that your formation documents strictly comply with the Texas LLC requirements when creating one. So be sure you use a reputable LLC services provider to handle this.
2. Professional Texas Limited Liability Company
The Texas LLC Act has specific provisions enabling the creation of a professional LLC entity to provide licensed professional services. This kind of entity has more limitations in that the business purpose is limited to providing specific types of licensed services and owners of the business entity usually have to be professionals licensed to provide the relevant service.
CREATING A NON-PROFIT TEXAS LLC
Unlike most other states, Texas specifically allows for a non-profit Texas limited liability company. These are similar to nonprofit corporations but you get the benefit of lesser formalities and a more flexible legal entity. Purposes include charitable, educational, and religious ones.
It should be noted that tax exempt status is not implied by the formation of a non-profit LLC in the State of Texas. An accountant can help non-profit organizations choose the correct tax elections in regard to tax exempt status.
4. Foreign Limited Liability Company in the State of Texas
A foreign LLC is one that is organized in another state but desires to conduct business in Texas. There is an entire section of the Texas LLC laws that address the regulation of a foreign LLC. First, it needs to file for a certificate of authority with the Texas Secretary of State.
While business conducted by Foreign LLCs in Texas is regulated by the state, the Foreign LLC is still governed by and subject to the rules and regulations of the state in which the LLC was initially established. - 15246
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For a Complimentary Guide about the Texas limited liability company or a Complimentary Texas LLC Name Search, visit Texas Business Formation, provider of the 3 Day LLC Formation Service: http://www.TexasBusinessFormation.com
