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Limited Liability Company  Form

Limited Liability Company Form

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What is the Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines the flexibility of a partnership with the liability protection of a corporation. This means that the owners, known as members, are typically not personally liable for the debts and liabilities of the LLC. In Texas, a TX LLC allows for a more straightforward management structure and fewer formalities compared to corporations, making it an attractive option for many small business owners.

How to obtain the Limited Liability Company

To form a TX LLC, you must file a Certificate of Formation with the Texas Secretary of State. This document includes essential information such as the LLC's name, duration, registered agent, and management structure. Additionally, you will need to pay a filing fee. It is advisable to conduct a name search to ensure your desired LLC name is available and complies with Texas naming requirements.

Steps to complete the Limited Liability Company

Completing the formation of a TX LLC involves several key steps:

  1. Choose a unique name for your LLC that complies with Texas regulations.
  2. Designate a registered agent who will receive legal documents on behalf of the LLC.
  3. File the Certificate of Formation with the Texas Secretary of State.
  4. Create an Operating Agreement outlining the management structure and member responsibilities.
  5. Obtain any necessary licenses or permits required for your specific business activities.

Legal use of the Limited Liability Company

The legal framework governing TX LLCs provides members with protection against personal liability for business debts. This means that, in most cases, creditors cannot pursue members' personal assets to satisfy business obligations. However, to maintain this protection, it is crucial to adhere to all legal requirements, such as keeping personal and business finances separate and following proper filing procedures.

Required Documents

To establish a TX LLC, you will need the following documents:

  • Certificate of Formation, filed with the Texas Secretary of State.
  • Operating Agreement, although not required by law, is highly recommended.
  • Employer Identification Number (EIN) from the IRS for tax purposes.
  • Any necessary business licenses or permits specific to your industry.

Eligibility Criteria

To form a TX LLC, you must meet certain eligibility criteria, including:

  • Being at least eighteen years old to act as a member or manager.
  • Choosing a unique name that complies with Texas naming regulations.
  • Having a registered agent with a physical address in Texas.

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