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Protect Your Personal Assets With an LLC

When starting a small business, it’s important to keep your personal funds separate from your business funds. It’s also important to protect your personal assets in the case of a lawsuit or other penalties your business incurs. One way to do this is by creating an LLC – Limited Liability Company.

First, Choose a Name

Texas law requires your business name to be easily distinguishable from the names of existing businesses. An LLC’s name must also contain “Limited Liability Company“, or “LLC”. To check for name availability, visit the Texas Secretary of State’s web site.

Next, File a Certificate of Formation

The LLC is officially created by filing Form 205 with the Texas Secretary of State. This form will ask for more information, such as the name of the LLC’s registered agent. This must be someone with a physical street address who has the authority to accept legal documents on behalf of the business. The filing fee for Form 205 is currently $300.

Finally, Consult a Professional

There are some special circumstances that will require more paperwork. For example, foreign LLCs that want to do business in the US have to pay a filing fee of $750 and provide even more information. Have a pro oversee your LLC formation to make sure everything is in order and properly filed the first time.

Of course, you can always buy a fully formed business or franchise. If you like this idea, please give us a call today!