How to start an LLC company? Is it right for you?
It really depends on what your short and long-term business goals are. We recommend that you think carefully about where the company is now and how you want your business to grow before deciding whether the LLC structure is right for you.
How to start an LLC in Houston Texas (Limited Liability Company):
STEP 1: Name your LLC
This is the first and most important step in how to start an LLC. Do some research to ensure that the name you choose fits your business and is easily searchable for potential customers.
Follow the naming guidelines: The business name must contain the words Limited Liability Company or LLC/L.L.C. as an abbreviation.
Restricted words require additional documents (eg, Banc, bank, banking, etc.) and / or licensed personals (eg, doctor, engineer, etc.). to be part of the LLC. Restricted words are those who confuse the name of your LLC with a federal agency or state, for example, FBI, Secret Service, Treasury, etc.
Is the name available in Texas? Make sure the name is still available by registering for a free account with the Secretary of State of Texas and conducting a name search. Registering an account on the Texas SOS website will also provide you the access to file any form of business online and make payments to the state.
Check if the URL is available: Check the name of your LLC is available so you can reserve your domain name. Even if you do not plan to make a website today, you can buy the domain name in order to keep others from acquiring it.
STEP 2: Select a licensed agent
It is necessary to appoint a registered agent for a Texas LLC.
What is a Registered Agent? A registered agent is a person or company designated by your company to receive and send documents officially on your behalf.
Who can be an authorized agent? The registered agent must be a Texas resident or authorized to do business in Texas society. You can choose an individual within the company, including yourself.
STEP 3: Present the certification of the formation.
You need to file the certification of formation for a domestic LLC. There is a nonrefundable fee of $300 payable to the secretary of state when submitting this form.
STEP 4: Create an operating agreement
What is an operating contract? An operating agreement is a legal document that describes the properties and operating procedures of your LLC. This agreement allows the formation of financial relations / work with the co-owners in an established system for your business. An operating agreement to form an LLC in Texas is not necessary but is a good practice to have one.
STEP 5: Get an EIN
What is an EIN? The Employer Identification Number (EIN) or federal tax number identification is used to identify a business entity. It is essentially a social security number for the company.
Why do I need an EIN? an EIN is required for the following:
Open an account in investment banking for the company.
For the purposes of federal and state taxation.
To hire employees for the company.
Where can I get an EIN? An EIN is obtained from the IRS (for free) by the owner of the business after the formation of the company.
These steps will help you on how to start an LLC.