Running your own business is a big step. And if you plan to start a business in Texas, the government wants to help. The state of Texas wants to make it as easy as possible for entrepreneurs to grow their businesses.
This article will show you how to register an LLC in Texas, step by step. It’ll also teach you about some forms and other required things when registering an LLC here in Texas.
1. Choose A Name for Your Business
Before registering your LLC in Texas, you need to develop a name for your business. There are a few rules you should follow when naming your business:
• It can’t be the same as another registered business in Texas – You can search the database at the Secretary of State’s website to see if there are any conflicting names.
• Shouldn’t include restricted words – Businesses cannot use words like bank or trust in their names in Texas. They also cannot use government identifiers like TX or America.
• It should be easy enough to remember – Try to choose a short name that doesn’t have too many syllables. Your name should be catchy and easy to remember.
• Shouldn’t include terms like “Limited Liability Company” or “Corp.” – You should not put your type of business in your name because this could confuse the general public.
• Shouldn’t include words like “and,” “&,” or “the” – It is not a good idea to use these words in your name because they don’t make it interesting and they can be confusing. Instead, it would help if you used punctuation.
• Shouldn’t include numbers or symbols – You are not allowed to use numbers in your business name unless it is part of an official government.
2. File Articles of Organization
The next step of opening an LLC in Texas is to file articles of organization with the Secretary of State. You will need to fill out an application, pay a fee and send it in with the appropriate documents. These documents include:
• Proof of your business’s existence. This could be a business license, registration, or certificate of incorporation.
• An operating agreement – You should have an operating agreement to establish the rules and regulations for the company.
• A list of all owners – You need to list at least one owner on the articles of the organization. The name should be specific so that it can be recognized by other businesses and individuals when dealing with this company in a public place.
3. Get a Federal Tax ID Number
4. Apply for a Trade Name Registration
A trade name is the business name. You can use it to identify your business when being traded, among others. Registering a trading name is very similar to filing for a federal tax ID number. You need to file an application online and wait for approval within 30 days.
5. Register for Sales Tax & Employer Identification Numbers
Several states require you to register for and pay sales tax. This is a very important step in the process of opening a business. The last thing you want is to have your customers coming back and asking for a refund because they didn’t have to pay any sales tax.
6. Get Business License
Most states require you to apply for a business license before opening your business. This is often done at the county or city level, depending on where you live when applying. You can check with your local government office or call your state agency directly if you need help finding out what documents are needed for a business license in your area.
7. Open a Bank Account
Before opening a bank account, you need to have your business name and address on file with the federal government. Every bank will have its process for this. You also need to open an account to deposit your business money and pay for your business expenses. The same is true for any business credit card you might want to apply for.
8. Get Business Insurance
If your business is making any significant purchases or investments, you must get insurance on these items before opening your business account and making payments on them. You will want to ensure that your business insurance is as comprehensive as possible.
Getting a business license is something you should do before starting any business. Once you have your business license, it’s important to keep it up to date so that the government knows where your business is located and what it’s doing. If you have any questions about this process, please contact the appropriate government agency in your area.