Setting Up a Limited Liability Company in Texas

The Steps for Protecting Your Business as an LLC—Part One

When you’re establishing a new business venture, one of the most important decisions you’ll make will focus on the legal structure or form of the business. A limited liability company, or LLC, offers many of the benefits of a corporation without a lot of the hassle. It’s relatively simple to create a limited liability company, it will typically protect your personal assets from creditors of the business, you’ll enjoy certain tax advantages over some types of corporations, and there’s a significant amount of flexibility in the ownership and management of your venture.

The Steps for Creating a Limited Liability Company in Texas

Establishing an LLC in the Lone Star State is a pretty straightforward process:

• Choose a name for your business—This can often be more difficult than it seems. First, your company name must indicate that it is being operated as a limited liability company. Accordingly, you must use the words “limited liability company” or “limited company,” or some abbreviation that signifies the legal structure, such as L.L.C., LLC, L.C., or LC. Common abbreviations of “limited” and “company” are also permitted.

  You must also choose a name that will clearly distinguish your business from any other business names already on file with the state of Texas. The Secretary of State’s Office maintains records, which can be searched to determine name availability. You can then file an application to reserve your chosen name. Note, though, that you don’t have to use the full legal name of the LLC in the business world. You may operate your business as a “DBA,” or “Doing Business As,” but must register an Assumed Name Certificate to do so.

• Identify and appoint a registered agent—You must provide the name and address of someone who will accept service of process in Texas, should you be named as a defendant in a lawsuit. You cannot use a P.O. Box as the address—it must be a physical address, and the LLC cannot be its own registered agent.

Once you’ve completed these requirements, you are ready to file your Certificate of Formation with the Texas Secretary of State. We will look at the remaining tasks required for establishing a Texas LLC in Part Two of this series.

Contact MCIS Law

At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to businesses in southeast Texas. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121. We accept allmajor credit cards.