How to Open An LLC

To open an LLC, business owners must first complete several steps. It is sometimes a long, tedious process to open an LLC, but very much worth the effort according to most business owners. But, it is essential that you’re aware of the right steps that you must complete or you risk running into complications that could tear your business down before it has the chance to get off the ground. Follow the steps below to open an LLC, but most importantly, get in touch with an attorney. A lawyer who specializes in business law can help you complete the steps to open an LLC the right way, reducing error and frustrations in the princess. Make sure you consult with a business law firm like the Weisblatt Law Firm before you take the plunge.

Choose LLC Name

You must choose a name for your business that isn’t used by any other limited liability company on file within the Texas state LLC office. Take time to choose the name of your new LLC carefully. A lot goes into a name and it certainly has an impact on your popularity in the community as well as your success. The chosen name must end with LLC.  Contact the LLC office to learn if the name you want to use is available.

File Articles of Organization

An article of organization is a document that any company that wishes to attain LLC status must complete. The articles of organization contain basic business information such as the name of the LLC, the address, and the owners (members) names. Articles of organization simply provide the state with proof that your business is open. There is a fee to file this document. Currently the fee to file articles of organization is $300, but this amount is subject to change.

Create an LLC Operating Agreement

The LLC operating agreement is an important document that outlines rules of ownership and operation of your business. This agreement should be made in writing and with the help of an attorney to ensure that it is legally binding and well-written in a manner that is easily understood. If the business is co-owned under an operating agreement, it should also include the members’ percentage of interest in the business and their rights and responsibilities for the business.

Obtain Licenses & Permits

There are licenses and permits required by all Texas LLC companies. These permits and licenses must be obtained before the company opens. A business license is one such license that you will need. If you sell products to consumers, a seller’s permit is another permit that is needed. There are fees for each permit that you must pay at the time of application. The amount of the permit or license varies and is subject to change at any time.

Follow All LLC Requirements

To retain status as an LLC entity, members (owners) must adhere to certain standards. This includes keeping detailed financial records of all transactions that take place within the business, gaining proper consent in necessary situation, and keeping minutes of meetings.  Failure to adhere to these requirements can result in forfeiture of your company as an LLC.