Limited liability companies (LLCs) are a flexible and in-demand business structure for small business leaders in Texas. Although the process of starting and maintaining an LLC is relatively easy, it is important that business owners complete the necessary paperwork accurately. Here are a few tips for establishing an LLC.
How to create an LLC
The first step in setting up an LLC is to reserve a name. Business owners would be wise to research their desired names online to ensure no other companies locally are using these names. Choosing distinctive names may help decrease confusion and possible legal disputes.
The next step in creating an LLC is to select a statutory or registered agent. This party will accept and deliver the business owner’s authorized papers, such as subpoenas and legal documents, on the LLC’s behalf. Any state resident over age 18 can fulfill this role.
The business owner can then file his or her organization’s articles with Texas’s secretary of state. Approved articles contain details such as the company’s and registered agent’s names and addresses. Another important step in creating an LLC is to apply for an employee identification number through the federal government. This number is necessary for filing taxes and hiring employees.
How an attorney can help
Navigating the process of establishing a business can be overwhelming, but a business law attorney in Texas can make it easier. An attorney can help a business owner understand the tax obligations associated with LLCs and other entities, such as corporations. The attorney’s chief goal will be to protect his or her client’s business interests long term.