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Starting a business in Texas is easier than ever. One of the most popular business entities for entrepreneurs in Texas is an LLC, but this type of company does carry a price: the Cost to Start a Texas LLC.
So, how much does an LLC cost in Texas?
The total cost of Texas LLC varies depending on the industry and services.
Furthermore, individuals can find out what documents are needed by going to the Secretary Offices website, which provides information on each state's business regulations.
This blog post will provide a breakdown of the Texas LLC fees and tips on keeping those costs as low as possible!
Cost of Texas LLC (Required and Optional)
The following are the costs associated with forming a Texas LLC:
Certificate of Formation
The primary cost of Texas LLCs is associated with the certification of formation. Interested business entities in Texas must file a certificate of formation with the Secretary of State- The filing fee for a Certificate of Formation is $300.
This can be done online, by mail, or in person.
To file by mail, applicants will need to download the Certificate of Formation from the Texas Secretary of State website. Once completed, they will send it along with a check or money order for $300 made payable to the Texas Secretary of State.
The mailing address is:
P.O. Box 13697, Austin, TX
If they choose to file in person, they will need to go to the James Earl Rudder Office Building,
1019 Brazos, Austin,
Applicants can click here to get answers to the question: How long does it take to get an LLC in Texas?
Registered Agent Fee
Registered agents are required in Texas and must have a physical address within the state.
The annual fee for registered agents can range from $39-$299, depending on the LLC service provider.
Working with the best LLC Services in Texas is crucial to the success of a new business. It would help if entrepreneurs took their time in finding the right company to align themselves with because it will affect the overall outcome of the Texas LLC.
The best bet is to have a high-quality registered agent and legal service provider that can offer excellent customer service, 24/7 access, and more value for less money. One of these is the very reputable Incfile.
Their services are pocket-friendly without hidden fees when forming an LLC. Also, clients can count on these providers to customize their services to fit the needs of the organization.
Cost to Form a Foreign LLC in Texas
If an LLC is based in another state, but the owner wants to do business in Texas, they must file for a Foreign Qualification. The filing fee for this is $750.
Prepare an Operating Agreement (Optional)
An operating agreement is not required in Texas, but it is recommended that LLCs have one in place. This document outlines the ownership and management structure of a given LLC and the rules and regulations for running the business.
Operating agreements can be simple or complex, depending on the needs of the LLC. Entrepreneurs can find templates for operating agreements online or hire an attorney to draft one. The cost of an attorney will depend on their hourly rate and the complexity of the LLC.
An operating agreement must be thorough and cover all aspects of the business. Therefore, individuals looking to draft one without consulting a legal counsel must conduct proper research before beginning the process.
Using an Assumed Name or "DBA"
Companies doing business under a name other than their LLC's legal name must file for an assumed name certificate. The cost of this is $25 and can be filed online, by mail, or in person.
Employee Identification Number, EIN
If an LLC has employees, they must obtain an Employer Identification Number (EIN) from the IRS. This is a free service offered by the federal government.
Business Permits and Licenses
Texas LLCs must obtain various business permits and licenses depending on the industry. For example, a Texas LLC engaged in the sale of alcohol must apply and pay for an appropriate license or permit. There is a tendency for jail or fines time if a business sells alcohol without TABC authorization.
For more information on business licenses and permits, applicants can check out the Texas Comptroller of Public Accounts site.
Annual Report Fee
All LLCs inTexas must file an annual report and franchise tax with the Secretary of State. While it is free, failure to file on time will result in a $50 late fee as a penalty. This form is available on the Texas Comptroller of Public Accounts website. It is due on the 15th of May.
How much does it cost to form an LLC in Texas?
The Texas Secretary of State requires a $300 filing fee to form a limited liability company. This fee is an application fee and not a renewal Texas LLC cost.
Can an Individual form a Texas LLC if I live outside Texas?
As long as the individual is a foreign resident and is at least eighteen years old, they may form a Texas LLC. However, they'll be required to designate an agent for the service of the process in Texas. The agent is required by law to have his or her primary office at the company's registered address to accept service of process for the company.
Individuals interested in forming an LLC should look at the state resources and tax forms provided by the Texas Secretary of State's website. All Texas residents are required to file with the state if they form a legal entity.
When forming an LLC, applicants must follow all the correct procedures and complete any required forms. Failure to do so may result in fines or penalties.
While partnering with a legal counsel can add to the Texas LLC fees, it may be well worth it for entities forming an LLC for the first time. A legal professional can help ensure that everything is done properly.
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