The first step in forming a limited liability company (“LLC”) is to find an available name and file a Certificate of Formation with the Texas Secretary of State. The filing fee is $300.
The next step is to draft and sign the company documents.
The company documents needed are as follows:
- Company Agreement: This is the document is the operating agreement that contains the rules and regulations of the company. The company agreement will also contain language regarding whether the LLC will have series or no series.
- Consent of Registered Agent: The registered agent is the person who accepts legal service and correspondence on behalf of the LLC. The registered agent must have a Texas address and sign a written consent to serve.
- Minutes of the Organizational Meeting: The members and managers of the LLC should meet and vote on electing officers and adopting the company agreement. The minutes are the records kept of this meeting, and should contain a list of the actions taken at the meeting.
The next step is to obtain and EIN from the IRS for the entity. The EIN acts as the identifying number for tax purposes, like a social security number does for an individual.
A very important part of having an LLC is following corporate formalities. The LLC should have its own bank accounts and records. LLC assets should not be commingled with personal assets. Having all the company documents in order helps keep these formalities in place, which protects the individual.