How To Start an LLC in Texas in 12 Easy Steps

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Have you finally decided to start your own limited liability company (LLC)? Perhaps you’ve got a great idea waiting to get out into the world, or maybe you just need a change of pace from the daily grind. Either way, starting a Texas LLC can help you be your own boss, create your own schedule, and enter the world of commerce.

They say everything’s big in Texas, and that’s true of the Shopify community 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’s still plenty of room for your ownbusiness ideas, from the Texas Panhandle to the Rio Grande. Ready to get started? Let’s look at some resources for starting a Texas LLC.

What is a limited liability company (LLC)?

有限责任公司业务结构,给你一些of the advantages and protections offered by a corporation, without the associated administrative hassle and cost. While a sole proprietorship can be easier to set up, it doesn’t protect your personal assets from liabilities like lawsuits and debt collection. LLCs are designed to keep your personal assets separate from your business assets. However, it’s not as easy to transfer ownership of an LLC as it is with a corporation. Additionally, your tax advantages may not be as comprehensive as with a corporation, so it’s important to understand the differences between business structures in Texas.

Is an LLC right for you?

If you're planning tostart a businessthat includes employees, an LLC may be just the right business structure for you. It’s also a good 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 too far ahead of yourself, it’s 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-term? Spend some timedeveloping your ideato 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 isname your business. Most registration steps on this list require you to have a business name that is unique to your enterprise.

The ShopifyBusiness Name Generatorcan help you come up with a name that sticks in the minds of potential customers. Assemble a short list of business names, then search online to see if any businesses are already using them. Next, consult theUnited States Patent and Trademark Officedatabase to see if any of your preferred names have been trademarked. Once you’ve narrowed down your list, use the ShopifyDomain Name Generatorto see if a correspondingdomain nameis available.

The State of Texas has laid out requirements for business names in theTexas Secretary of State name filings FAQ. Once you’ve settled on a compliant name, you can register it viaSOSDirect.



3. Create a business plan

You’re not required towrite a business planby the State of Texas. But that doesn’t mean you should skip this step. Most business loan officers will want you to submit one as part of funding applications, and business plans are also a handy document to keep your LLC startup process on track and organized. They can also help you envision the future of your business and plan for it accordingly.

A business 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 plan does require some effort up front, but it’s worth it in the long run. If you need help getting inspired to write your own, you can review somebusiness plan examplesand use abusiness plan templateas a foundation.

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 number is necessary throughout many of the steps in the LLC registration process. It functions similarly to your Social Security Number (SSN) except it’s for your LLC business. Before going to the IRS website toregister via their interview-style application process, make sure you have your personal SSN or Individual Taxpayer Identification Number (ITIN) ready. You can alsoregister by fax, phone, or mail.

5. File Texas certificate of formation

In Texas, filing a certificate of formation, also known as a statement of information or annual report, is the step that registers your LLC with the Secretary of State’s office. A certificate of formation provides details about your company, such as the official name, contact information, address, and more. You can file your certificate of formation online viaSOSDirect. Information is also available onhow to file using alternate methods

6. Choose a registered agent in Texas

Aregistered agentis an individual or corporation 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 part of the LLC business structure that is designed to protect your personal assets from liabilities incurred by your business. You cannot serve as your own registered agent in Texas. More information on registered agents can be found in theTexas Secretary of State Registered Agent FAQ.

7. Obtain business licenses and permits

Businesses in many industries throughout the country are required to obtainbusiness licenses and permitsin order to operate legally. Common licenses and permits include:

  • Alcohol sales
  • Weights and measures
  • Waste discharge

You may not need a general business license to operate in Texas, but you may need specific ones. For example, any business selling liquor needs to have a license from theTexas Alcoholic Beverage Commission. The licenses and permits you need for your LLC may vary depending on where your business is located.

Complete information on which industries require licenses and permits is available in theTexas Business Licenses & Permits Handbook. Licensing and permits are administered by theTexas Economic Development Business Permit Officeand applications can be made through theGovernor’s Small Business Resource Portal.

8. Understand Texas state tax requirements

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

Additionally, most sales in Texas are subject to aflat rate sales tax. Depending on where your LLC is located, you may also be required to pay an additional local sales tax. Make sure you understand your tax obligations long before you make your first sale.

9. Prepare an operating agreement

An operating 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 operating agreement to the State of Texas as part of the LLC registration process. But it’s still a good idea. Without one, Texas State default operating rules will apply to your enterprise, which could make it difficult to achieve your vision for the company. For help 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 protection is not comprehensive, so it’s a good idea to look at your insurance options to make sure you understand what is covered and what needs additional policies. TheTexas Department of Insuranceprovides a substantial amount of information on your insurance options, including:

11. Understand financial considerations

By now you understand that an LLC is meant to separate business and personal assets. As part of that separation, you can open a business bank account, apply for a business credit card, and even contract a business accountant. Hiring a business accountant can be a good way to ensure your personal finances are protected and your business finances are solvent and profitable.

If you find that your LLC needs additional capital, either during startup or regular operations, you may want to apply for a bank loan, so be sure that your business plan is complete.Shopify Capitalmay also help you access funding.

12. Market your LLC

Determining how you’re going toraise the profile of your business并开始驾OB欧宝娱乐APP驶意识和销售是一个进口ant step in the LLC startup process.

Brand your LLC

There’s a good chance yourbrandingwill be the first touchpoint your audience has with your LLC. You’ll need a brand that is recognizable, memorable, unique, and attractive while showing what makes your products or services different from the competitors.

Brand elements include:

  • Your company logo. Try Shopify’s Hatchful toolfor easy logo creation.
  • Official brand colors and imagery.Palettonis a great way to coordinate colors.
  • A catchy slogan or tagline. Check out the ShopifySlogan Makerfor 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 assistance building your brand, there arehelpful resources available. And don’t be afraid to bring your personal sense of style and creativity to every brand element you develop.

Build a business website

One of the most visible and far-reaching elements of your brand is your website. Many potential customers will head to your website as soon as they hear about your business, so you need to be online to greet them. Happily, building a website is not the difficult task it once was thanks to modern technology andplatforms like Shopifythat don’t require you to have any design or development experience to create something beautiful and functional. To get started, you’ll need:

  • 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 amarketing planbefore showing off your shiny new, beautifully branded LLC, to help yousell your products and services. Marketing plans often include:

  • An executive summary that summarizes your overall plan
  • Amission statementthat 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) analysisthat can help you identify what you’re doing right and what needs to be refined
  • Market researchthat helps you understand your industry, potential customers, and competitors
  • A market strategy that details your plan of attack
  • Abudget that keeps your finances under control

If you’re not sure where to begin, you can check out somemarketing plan examplesfor inspiration.


Texas LLC FAQs

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

Registering an LLC in Texas can take a 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 several 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 state and federal levels, including an annual state franchise tax and sales tax.

See our guides forCalifornia LLCandFlorida LLC.

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