Form a Texas Limited Liability Company - Here's How!

June 13, 2004
Stephanie Eidolon

The formation of a Texas Limited Liability Company isn't much different from the formation of an LLC in any other state of the union. In fact, all you need to do for Limited Liability Companies in Texas is to file your articles of organization and to distance your personal finances from your business. It's really rather simple.

Limited Liability Companies, otherwise known as LLCs, comprise a relatively recent trend in business. Since the early nineteen-nineties (1990s), the Limited Liability Company form of business structure has become more and more accepted in the United States, although it has been used worldwide for some time. In essence, the LLC has rewritten the books on corporate responsibility and organization.

Know Your Territory - Texas LLC Specifics

In Texas, you are encouraged to make your personal finances separate from your business finances. This is so that you, if you're the sole proprietor of the Limited Liability Company, can keep your fortune from being put at risk if it is tied up in the Company's actions. This is especially true if you're planning on having your Company offer guarantees. What's more, in Texas, Limited Liability companies are offered tax breaks if they are listed as specific business types. LLCs are taxed only for a partnership and are for the most part not subject to public disclosure laws. However, they do not issue share certificates. This is something to consider.

In your endeavor to form a Limited Liability Company in Texas, keep these things in mind…and good luck!