Before Forming An LLC In Texas, Learn The Essential Steps
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by: amylimcd
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The Texas limited liability company is an extremely flexible and easy to maintain business vehicle for a business in Texas. It is important when forming an LLC in Texas that it is properly formed strictly in compliance with Texas LLC requirements. Know the essential steps so you can avoid the mistakes commonly made during the formation stages.
You do not want to face the hassles and delays of a rejected filing with the State of Texas. The best way to avoid this is to make sure that your filing documents contain everything required by the Texas requirements.
PAYING THE PROPER FEE TO THE PROPER AGENCY
A common cause for a rejection is paying the wrong amount for the filing or making the check out to the wrong state agency. This is an easy one to avoid.
Texas currently charges an initial filing fee of $300 but other charges are typically added depending on how you submit your filing. Review the specific details prior to making your payment.
UNACCEPTABLE TEXAS LLC NAME
A second cause for a rejection is if your filing requests a name for the Texas limited liability company that is not acceptable to the Texas state agency. The Texas LLC requirements mandate that an LLC name not be the same as or deceptively similar to another name being used by another Texas legal entity.
Texas is infamous for its comprehensive list of name rules. When it comes to whether a name is deceptively similar to another name, Texas leans on the side of rejecting names that resemble another name. There is a laundry list of name related rules that must be strictly complied with. Plus, the agency has a lot of discretion in making this determination.
Important key here is to make sure your proposed name is available prior to submitting your filing.
REQUIRED INFORMATION
A third cause for a rejected filing is submitting documents with incomplete information. Texas LLC requirements as set forth in the laws address matters such as the proper method of submission, rules regarding what forms you prepare and submit, and detailed information about the Texas registered agent and registered office.
Another unique aspect when forming an LLC in Texas is that the state requires the public disclosure of the initial member names and addresses for a member managed LLC. If the entity is going to be managed by managers, then the initial manager names and addresses are required to be disclosed.
The above discussion covers the major factors causing rejected filings when forming an LLC in Texas. After the state accepts a filing and provides the official formation documents, there are certain recommended actions you should follow to preserve the liability protection and other benefits provided by a Texas limited liability company.
After forming an LLC in Texas, get the right education for operating and maintaining your business entity.
About the Author
For more information about forming an LLC in Texas or for a FREE Texas Name Search or FREE Texas LLC Guide, visit: http://ww.TexasBusinessFormation.com
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