ZenBusiness reviews its own products and services and compares them to others in the industry.
If you’re looking for an excellent Texas LLC service then choose ZenBusiness. We’ve already formed 700,000+ businesses since 2017!
If you want a socially conscious Texas LLC service with a service discount, choose ZenBusiness.
Northwest Registered Agent charges $225 (plus state fee) for LLC filing services. That said, Northwest’s personalized customer support is a feature that could make their prices worth paying for some entrepreneurs.
Overall, Northwest does have some points in its favor. However, keep in mind that it charges $225 (plus your state’s required fee) for its LLC filing services.
Want to learn more? See this Northwest LLC review.
LegalZoom is one of the biggest names in the industry, with millions of customers served and frequent advertising efforts. LegalZoom provides an LLC filing package for free (plus the state’s fee).
LegalZoom is a huge company, so while it offers extended support hours, the quality of its customer support may vary a bit from representative to representative.
Want to learn more? See this LegalZoom LLC review.
Incfile/Bizee offers LLC formations for free, as long as you pay your state’s fee. Incfile and ZenBusiness have some similar characteristics, but there are also some significant differences that set the two apart.
If you’re looking for a cheap LLC formation service in Texas and ZenBusiness doesn’t feel right for some reason, Incfile/Bizee could be worth a closer look.
Want to learn more? See this Incfile/Bizee LLC review.
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Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.
You can read our complete guide to DIY an LLC setup in Texas, but here’s a quick look at the process:
Every LLC in Texas needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.
As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.
This document, once filled out and filed, officially forms your business in the state of Texas. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Texas has a $300 filing fee.
Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:
If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. The primary tax burden in Texas is the state’s franchise tax. It applies to every business that surpasses the $1,300,000 tax-due threshold. Any business subject to the tax will pay taxes at a 0.75% rate. You may also need to account for sales taxes (6.25% plus local fees). The sales tax also requires a permit. You can learn more about these and other miscellaneous business taxes from the Comptroller of Texas.
There’s no general state business license in Texas, but that doesn’t mean you won’t need to get professional licenses, such as those handled by the Texas Department of Licensing and Regulation.
Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.
Each year, your LLC will need to file an annual franchise tax report to update the state about the standing of your business. It’s due by May 15.
Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.
You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).
This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Texas LLC Formation Guide.
Mailing Address: P.O. Box 13697 Austin, TX 78711-3697 | Physical Address: 1019 Brazos St. Austin, TX 78701 |
Telephone: (512) 463-5555 | Website: https://www.sos.state.tx.us/index.shtml |
LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnership vs LLC, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. An LLC may also elect to be taxed like a corporation, although this is not a very common option. For more a more in-depth description see: What is an LLC?
In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Texas business. You cannot form an LLC in Texas without filing the Certificate of Formation, the document that officially registers your business within the state. This document has a $300 filing fee (note: there is a 2.7% convenience fee for credit card payments).
Your LLC will have to file a Franchise Tax Public Information Report each year, accompanied by your company’s Franchise Tax payment. Read more about Texas costs – Texas LLC costs.
FAQ's
We invite you to take a look at our comprehensive guide to forming a limited liability company in Texas. This article walks you through the LLC formation process in this state step by step, ensuring that you don’t miss any crucial elements.
One of the most important steps in forming a Texas LLC is choosing a business name. Once you come up with ideas for your name, you should search through the state’s Taxable Entity Search to make sure your desired name is available. For more information on conducting a business name search in Texas, check out Texas business search on the topic.
You can file your Certificate of Formation online through the Texas Secretary of State’s SOSDirect system, or you can print off the paper form which can be filed by mail, fax, or in person.
All LLCs operating in the state of Texas are subject to an annual Texas franchise tax, which ranges from 0.375% to 0.75%. However, Texas LLCs are not required to file a traditional annual report like they are in most other states.
To find out which permits and licenses are applicable to your business, head on over to the Texas Department of Licensing and Regulation site, where you can find extensive information about licensing requirements in this state.
According to the Texas Secretary of State, the typical filing time for an LLC formation is 5-7 business days. If you’re in a hurry, you can expedite your filing for just $25, which speeds up the turnaround time to just one business day.
Unfortunately, not all businesses last forever. If the time comes when you need to close your LLC’s doors, you’ll need to do so in a manner consistent with the state’s regulations. That’s why we wrote our guide to Texas LLC dissolutions, so you can complete the process in a compliant manner.
If your LLC already exists in another state, you don’t actually need to “form” it in Texas. Instead, you’ll need to foreign qualify the business in this state. This process is somewhat similar to LLC formation, but there are some crucial differences as well. Take a look at our guide to foreign qualifications in Texas for more information.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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