Monday, March 23, 2009

Texas LLC Requirements: Avoid an Improper Texas LLC Formation

By Christine Snook

The Texas limited liability company laws provide small business owners with sound liability protection, while at the same time giving them a simple and flexible way to operate their small businesses.

To ensure that you have a proper Texas LLC formation and its protection from personal liability, you must fully understand the rules and adhere to all of its requirements.

TEXAS STATE AGENCY ENFORCES THE RULES

The regulation of Texas LLC entities falls under the authority of the Secretary of State, which is responsible for overseeing all corporations within the State of Texas. This agency strictly enforces all laws and regulations covering the formation of limited liability companies.

The documents that are filed to form a TX LLC must include certain information about the new business to be conducted and formatting parameters must be adhered to.

FOUR MAIN TEXAS LLC REQUIREMENTS

One of the most important Texas LLC requirements is making sure that the name you provide for the limited liability company name is available for use in the State of Texas as a limited liability company name. Texas has a lot of name related rules and restrictions. Also, because many legal entities are formed or registered in Texas, many names are no longer available.

A TX LLC also needs to appoint and maintain a legitimate Texas registered agent that has a permanent physical address in Texas. The registered agent is the official person or entity that can accept legal papers and other important documents delivered to the Texas limited liability company.

Texas requires that all of the members of the LLC must be listed in the initial filing documents. All managers of the business must be identified in the official documents filed with the state. If you do not wish to publicly name all members of the business, you may simply list one initial member and then add more members after your LLC has been formed.

The final Texas LLC requirement is to pay all the proper fees and charges to the proper entities or organization. The standard filing fee for an LLC in Texas is $300. Some other charges and fees may also be applied.

SUMMARY

To avoid rejections, delays, risking personal liability, or other issues associated with a LLC request, make sure to meet all of Texas LLC requirements before filing the request with the Texas Secretary of State. - 15246

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