How to start an LLC in Texas in 12 steps

This post is for information lone. You are responsible for reviewing and using this data appropriately. This content doesn ’ triiodothyronine contain and international relations and security network ’ triiodothyronine mean to provide legal, tax or business advice. Requirements are updated frequently and you should make certain to do your own research and reach out to professional legal, tax and business advisors, as needed. Businesses outside of Texas will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy and any other applicable policies .
Have you finally decided to start your own limited Liability Company ( LLC ) ? possibly you ’ ve got a big mind waiting to get out into the universe, or possibly you just need a variety of yard from the daily swot. Either direction, starting an LLC in Texas can help you be your own emboss, create your own schedule, and enter the populace of commerce .
They say everything ’ second boastfully in Texas, and that ’ randomness true of the Shopify residential district in the state. Thousands of businesses there are using Shopify to sell their products and services, in a wide variety of industries including apparel and accessories, home and garden, and health and beauty. But there ’ sulfur hush enough of room for your own business ideas, from the Texas Panhandle to the Rio Grande. ready to get started ? Let ’ s expect at some resources for starting an LLC in Texas.

What is a Limited Liability Company (LLC)?

An LLC is a business structure that gives you some of the advantages and protections offered by a pot, without the consort administrative hassle and monetary value. While a lone proprietorship can be easier to set up, it doesn ’ t protect your personal assets from liabilities like lawsuits and debt solicitation. LLCs are designed to keep your personal assets separate from your business assets. however, it ’ mho not as easy to transfer possession of an LLC as it is with a pot. additionally, your tax advantages may not be ampere comprehensive as with a pot, so it ’ randomness crucial to understand the differences between occupation structures in Texas .

Is an LLC right for you?

If you ‘re planning to start a business that includes employees, an LLC may be just the right business structure for you. It ’ south besides a dependable option to consider for early-stage startups that may not have the time or resources to devote to setting up a corporation right away .

1. Choose an idea for your LLC

Before you get excessively far ahead of yourself, it ’ second good practice to take a step back and examine your business idea. Is there demand ? Can it generate sustainable profits ? Is it likely to be successful long-run ? Spend some time developing your idea to help you understand the type of business you want to operate and what kind of business owner you want to be .

2. Name your Texas LLC

One of the first things you ’ ll want to do is name your business. Most adjustment steps on this list require you to have a clientele diagnose that is unique to your enterprise .
The Shopify Business Name Generator can help you come up with a name that sticks in the minds of electric potential customers. Assemble a short list of business names, then search on-line to see if any businesses are already using them. next, consult the United States Patent and Trademark Office database to see if any of your choose names have been trademarked. Once you ’ ve narrowed down your list, use the Shopify Domain Name Generator to see if a corresponding sphere mention is available .
The State of Texas has laid out requirements for occupation names in the Texas Secretary of State name filings FAQ. once you ’ ve settled on a compliant identify, you can register it via SOSDirect .

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3. Create a business plan

You ’ rhenium not required to write a business plan by the State of Texas. But that doesn ’ triiodothyronine hateful you should skip this step. Most business loanword officers will want you to submit one as region of support applications, and business plans are besides a handy document to keep your LLC startup serve on track and organized. They can besides help you envision the future of your business and plan for it consequently .
A commercial enterprise plan is a document that outlines :

  • Company description
  • Market analysis
  • Management and organization
  • Products and services
  • Customer segmentation
  • Marketing plan
  • Logistics and operations plan
  • Financial plan

Writing a business design does require some effort up movement, but it ’ second worth it in the farseeing run. If you need help getting inspired to write your own, you can review some commercial enterprise plan examples and use a business plan template as a foundation garment .

4. Get an Employer Identification Number (EIN)

When starting your LLC in Texas, there are federal tax requirements to follow, like applying for an Employer Identification Number ( EIN ). Supplying this tax information phone number is necessary throughout many of the steps in the LLC registration process. It functions similarly to your Social Security Number ( SSN ) except it ’ mho for your LLC business. Before going to the IRS web site to register via their interview-style application process, make sure you have your personal SSN or Individual Taxpayer Identification Number ( ITIN ) quick. You can besides register by fax, telephone, or mail .

5. File Texas certificate of formation

In Texas, filing a security of formation, besides known as a statement of information or annual composition, is the step that registers your LLC with the Secretary of State ’ randomness office. A certificate of formation provides details about your party, such as the official name, contact information, cover, and more. You can file your security of formation on-line via SOSDirect. data is besides available on how to file using alternate methods

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6. Choose a registered agent in Texas

A record agent is an individual or pot that is designated to receive court documents on behalf of your LLC, in the event that you are served with a lawsuit or pursued by debt collectors. This is one depart of the LLC business structure that is designed to protect your personal assets from liabilities incurred by your clientele. You can not serve as your own record agent in Texas. More information on read agents can be found in the Texas Secretary of State Registered Agent FAQ .

7. Obtain business licenses and permits

Businesses in many industries throughout the nation are required to obtain business licenses and permits in holy order to operate legally. common licenses and permits include :

  • Alcohol sales
  • Weights and measures
  • Waste discharge

You may not need a general commercial enterprise license to operate in Texas, but you may need specific ones. For exemplar, any business sell liquor needs to have a license from the Texas Alcoholic Beverage Commission. The licenses and permits you need for your LLC may vary depending on where your clientele is located .
complete data on which industries require licenses and permits is available in the Texas Business Licenses & Permits Handbook. Licensing and permits are administered by the Texas Economic Development Business Permit Office and applications can be made through the Governor ’ s Small Business Resource Portal .

8. Understand Texas state tax requirements

Your LLC may be required to pay an annual franchise tax to the Texas Comptroller of Public Accounts. It is calculated using a gross doorway and defined percentages, so you may not be required to pay this tax if your earnings are below the doorway.

additionally, most sales in Texas are subject to a categoric rate sales tax. Depending on where your LLC is located, you may besides be required to pay an extra local sales tax. Make certain you understand your tax obligations hanker before you make your first sale .

9. Prepare an operating agreement

An operate on agreement is a document that outlines details about your LLC, such as :

  • How your business operates
  • How it is managed
  • How profits are shared between stakeholders

You are not required to submit an operate agreement to the State of Texas as region of the LLC registration action. But it ’ randomness even a good mind. Without one, Texas State default option manoeuver rules will apply to your enterprise, which could make it unmanageable to achieve your imagination for the company. For serve writing your own, operating agreement templates are available .

10. Examine business insurance options in Texas

Though your LLC does afford you many protections against certain types of liabilities, the auspices is not comprehensive examination, so it ’ s a thoroughly estimate to look at your indemnity options to make certain you understand what is covered and what needs extra policies. The Texas Department of Insurance provides a significant sum of data on your policy options, including :

11. Understand financial considerations

By now you understand that an LLC is meant to separate occupation and personal assets. As part of that separation, you can open a occupation trust account, apply for a commercial enterprise credit card, and even contract a business accountant. Hiring a clientele accountant can be a good way to ensure your personal finances are protected and your business finances are solution and profitable .
If you find that your LLC needs extra capital, either during startup or even operations, you may want to apply for a bank loanword, indeed be certain that your business design is complete. Shopify Capital may besides help you access support .

12. Market your LLC

Determining how you ’ re going to raise the profile of your enterprise and start driving awareness and sales is an authoritative step in the LLC inauguration march .

Brand your LLC

There ’ s a good opportunity your post will be the first touchpoint your audience has with your LLC. You ’ ll need a brand that is recognizable, memorable, singular, and attractive while showing what makes your products or services different from the competitors .
Brand elements include :

  • Your company logo. Try Shopify’s Hatchful tool for easy logo creation.
  • Official brand colors and imagery. Paletton is a great way to coordinate colors.
  • A catchy slogan or tagline. Check out the Shopify Slogan Maker for some inspiration.
  • Official fonts or typefaces for consistency across your website and marketing materials.
  • The official tone and voice of your company communications.
  • Your company’s brand positioning and persona.

If you need some aid building your brand, there are helpful resources available on the Shopify Blog. And don ’ deoxythymidine monophosphate be afraid to bring your personal sense of dash and creativity to every sword component you develop .

Build a business website

One of the most visible and far-reaching elements of your brand is your web site. many electric potential customers will head to your web site a soon as they hear about your clientele, so you need to be on-line to greet them. happily, building a web site is not the difficult task it once was thanks to modern technology and platforms like Shopify that don ’ metric ton want you to have any design or development experience to create something beautiful and functional. To get started, you ’ ll indigence :

  • Digital logo files in different sizes that suit your front page, footer, and anywhere else you want to brand your new website
  • Brand colors, so you can personalize your website theme and match it to your products, services, print materials, and more
  • Attractive product photos and imagery that engage users visually
  • Coordinated fonts to create a consistent look and feel across all of your promotional materials
  • A site map that outlines the page structure and makes it easier for you to organize all of the information you want to communicate to your customers
  • Your public contact information

Promote your LLC

You ’ ll want to create a marketing plan before showing off your glazed new, beautifully branded LLC, to help you sell your products and services. Marketing plans much include :

  • An executive summary that summarizes your overall plan
  • A mission statement that outlines your overarching goals and business philosophy
  • Objectives that detail the specific things you want to achieve through your LLC
  • A Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis that can help you identify what you’re doing right and what needs to be refined
  • Market research that helps you understand your industry, potential customers, and competitors
  • A market strategy that details your plan of attack
  • A budget that keeps your finances under control

If you ’ rhenium not indisputable where to begin, you can check out some marketing plan examples for inhalation .

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FAQs

How long does it take to start an LLC in Texas?

Registering an LLC in Texas can take a calendar month or longer to complete. Depending on where your LLC is based, it could take longer if you need multiple licenses and permits .

How much does it cost to start an LLC in Texas?

Setting up a relatively straightforward LLC in Texas could cost several hundred dollars or more. If your LLC requires respective licenses and permits you could spend more than $ 1,000 USD on startup costs.

Do LLCs pay taxes in Texas?

LLCs in Texas are required to pay taxes at both the express and federal levels, including an annual state franchise tax and sales tax .
This post is for information only. You are responsible for reviewing and using this information appropriately.  This content doesn’t contain and isn’t meant to provide legal, tax or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax and business advisors, as needed. Businesses outside of Texas will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy and any other applicable policies.
See our guides for California LLC and Florida LLC .

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