Recommended formation service - We have negotiated with Northwest to provide the best discount and packages for our users, we get compensated when users use our discount links. 💼 Northwest 75% 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 link - go.truic.com/3tw60I5 Fees are as follows $29 + state fee of $310 + $9 for BOI (This is optional but recommended as failure to do so can result in a fine of $500/day) 📙 Texas LLC Formation Page howtostartanllc.com/texas-llc
Thank you so much for this information! I have been searching all over and I must say that this video is by far the most helpful and informative I have found on RUclips :)
We appreciate that! Our team works hard to help small business owners. We have exciting things in the works at our Business Center. There are a variety of free resources there-- from starting your business to making it successful long-term. howtostartanllc.com/business-center
You do have to pay taxes on the income from an LLC. But, instead of the income being taxed at the corporate level and then again when you get a distribution as an owner, an LLC is only taxed once, on your individual tax return. The taxation is very similar to when a person is self-employed. Thanks for the question and best of luck!
We missed your reply. Thanks for your patience! We like to follow up much faster than this. The Veteran Verification letter comes from the Texas Veterans Commission. You can open this PDF and click "Connect with a business consultant" to get started with the Texas Veterans Commission. The consultant will help you gather the documents you need to turn in. After you turn in the documents, they will provide you with the Veteran Verification Letter. Here's the PDF: www.tvc.texas.gov/wp-content/uploads/2023/08/VVL-Qualification-Guide-as-of-August-23-2.pdf
Thanks for your great explanation of the process. Now, if I have a company in Colorado and I need toget the Texas tax payer ID, what do I need to do? thanksin advance!
Thanks for the question! You get your Texas Taxpayer Number when you register with the Comptroller. If you're operating in Colorado and want to engage in business activity, lease or own tangible property, or sell taxable services in Texas, you'll have to form a foreign LLC in the state so that your business can get a file number from the SOS, which is required for the registration application comptroller.texas.gov/taxes/permit/ comptroller.texas.gov/about/contact/ Here's a discounted link to form a foreign LLC in Texas: go.truic.com/3HgdBhH At TRUiC, our mission is to offer free resources and information. We support our work by partnering with service providers, earning a percentage on some of the offers we’ve negotiated on your behalf. Northwest is one such partner.
I’m assuming you are speaking to non Texans that have no prior formal business experience. I’m skeptical of your generic approach. Texas Series LLC has been around since 2009. Best Practice is to form a Series LLC.
That varies. If there will never be a need for a series and you do business nationwide a straight LLC avoids issues with states that do not recognize series LLCs and costs of management can certainly be higher. For many its best to KISS it, great for rentals and RE, yet all but useless for the majority of mom & pop outfits.
@@blackhole-z3m Are you a lawyer? How long? How many lawsuits have you prosecuted or defended? If you are not a licensed attorney do not espouse legal opinion. Since all Series LLC states borrowed their model from Delaware's series LLC statute I can assure you this is the best choice of business entity. And it is simpler than having multiple non Series LLCs. You would never want to hold all of your assets that are non-exempt assets in a single LLC as all assets in a single LLC would be at risk to any bogus or real creditors. Think of a LLC or a Series of a Series LLC as a "legal basket" that has charging order protection. Texas Series LLC law was drafted by Prof. Elizabeth Miller, Baylor Law School, she drafted it from Delaware law as most States adopted their Business Codes from Delaware Business law, but Prof Miller tweaked it to make it even stronger as an limited liability tool. Texas is a strong asset protection state to begin with by its constitution and by statute. If you are doing business in another State you best form your LLC or Series LLC in that State. If not you must register your foreign LLC in that State to legally do business in that State. In Texas if you fail to register your foreign LLC or other business entity in Texas you cannot prosecute or defend a lawsuit in Texas, and pursuant to the Texas Business Commerce Code you are liable for both civil and criminal penalties to the State. As an asset protection expert and long time litigation attorney I disagree with your simple opinion. It only takes one lawsuit against you, your company, or your assets to keep you up at night, especially if you have lumped everything into one legal basket. In Texas it is best practice to have a formal business entity act as the Manager of the underlying asset owning Series LLC. The Manager can be an existing entity an old fashioned LLC or even a Corporation, as it will never own any assets that a judgment creditor could potentially place a lien on or attach via a turnover proceeding. In my law practice I use a Texas Two Step or Three Step method for Asset Protection and Business Succession planning. In addition, I have clients that form Anonymous NM LLCs which is a great asset protection tool and State (better than NV, WY) as they use their Anonymous NM LLC to be the Manager of their Texas Series LLC. Regardless of the Choice of Entity you must observe the minimum formalities of the entity which is a low standard but again, in a lawsuit that is what a bogus or legitimate creditor looks for is that you did not observe the formalities. My 2 cents. My opinion is based on lots of business law, real estate law, insurance law, HOA law, and court house time prosecuting or defending lawsuits.
A series LLC allows business entities formed as LLCs to have a parent/ subsidiary structure similar to a group of corporations. One nice thing about this arrangement is that a series will not be burdened by the liabilities of another series. However, according to section 101.602 of the Texas Business Organizations Code, for a series to maintain its separate limited liability, it must keep separate records of assets. Bookkeeping-wise, it must be treated as a separate company. Some businesses may prefer not to complicate their admin systems in this way. Also, a business may just have one line of revenue-earning activity. And so there’s no reason to have a series LLC.
@@HowtostartanllcOfficial We can agree to disagree. However, your blanket statement there is no reason(s) to have a series LLC is not correct and completely misses the point of best practices and flexible simplification of operating businesses. Your reply misstates what I was saying in this old post. Are you a Texas attorney? How many lawsuits have your prosecuted and defended in Texas or other State? Legal reasons have little to do with best practice in accounting rules. It is not difficult to be in compliance with accounting rules and operate a Series of a Series LLC. As you know, Texas is a strong asset protection state and best choice of entity is a Texas Series LLC since 2009. Especially if you are an investor with multiple investment properties. The old fashioned and unsophisticated method is to form a separate LLC for each property or asset class. Why pay TX SOS $300 each time you need an entity? One of my clients a large portfolio of investment properties under the umbrella of their Series LLCs. Was easy to set up and maintain. You may want to read the legislative intent and the rules on liability in Texas. I refer you to Prof. E. Miller, Baylor Law, has written extensively on this area and drafted the TX Series LLC law. Texas would not have been the 8th State to pass the Series LLC law in 2009, and now 21? other States follow DE law and have the similar Series LLC laws. Are 21 States and District of Columbia all wrong? I guess all of the States with Series LLC laws are not correct and you are? Ridiculous. For separate LLCs, NM is a good place to form an an $50 LLC if you want low cost of entry and multiple separate LLCs and NM allows for an anonymous owner LLC if you use a NM firm to form and act as Manager. but you are still required to register your foreign entity in Texas to operate in Texas and be in compliance with TX Business Commerce Code.
Thank you for sharing your opinion. We wish to clarify that we did not make a blanket statement that there is no reason to have a series LLC. We do sincerely appreciate your sharing your extensive knowledge on the subject.
Is there any way to revive, without paying, an old corporation that i let go of years ago? I called and the fees and panaltys total up to well over 1000 or more ....i mean its cheaper to just get a new one but im partial to my old one.
@@HowtostartanllcOfficial yes..the name. I owned 2 childcare centers and sold them. I didn't give up the corporation. I believe it's only $300.00 to file for a new corp so it's not expensive.
It is mostly likely the case that you will need to pay the fines and keep the name or start a new corporation and pick a similar name. BUT. It wouldn't hurt checking with Texas regarding whether your old name is available (due to inactivity). It's doubtful but worth a shot: 512-463-5555 or email at corpinfo@sos.texas.gov. Good luck and feel free to share the outcome-- someone along the line might benefit from the info.
Thanks for the comment. There are a few options. You can: - Form an LLC as a holding company for other businesses (a little complicated) - Register for multiple DBAs that fall under the umbrella of one LLC (easier) - Create a series LLC (complicated) Let us know if you have more questions. And, good luck!
Of course, we are updating all of our guides in each state, in the meantime here is our updated written guide: howtostartanllc.com/michigan-llc And if you have any questions feel free to ask here and we will do our best to answer!
Happy to help, thanks for watching! We appreciate the kind words. Here's our most discounted link for LLC formation ($29 plus state fees): go.truic.com/45hplKy Best of luck with your small business. At TRUiC, our mission is to offer free resources and information. We support our work by partnering with service providers, earning a percentage on some of the offers we’ve negotiated on your behalf. Northwest is one such partner.
Thanks Great Information! One Question: after filling the Operating Agreement where we gonna send this? ALSO is this one time filling or we need to fill each year?
Thanks for questions. You will keep the operating agreement in your records, no need to send it anywhere. The LLC is registered one time. You'll need to submit a "public information report" each year. This report, which is due by May 15 every year, is designed to provide updated and accurate information to the state regarding your business. There's also a franchise tax report that is due each year if the business earns more than $2.47 million in annual revenue.
Thank you so much for providing this valuable information. I am in the process of restructuring my hair business, I just relocated from Michigan and I have been doing extensive research as to what is required for me to now operate my business in the state of Texas. I was Leary about operating as a foreign entity for several reasons. This information will help me to create an LLC in the state of Texas and transition my business seamlessly for a reasonable price. 🙏🏾🙏🏾
The Form 05-904, Certification of New Veteran-Owned Business can be downloaded from the New Veteran-Owned Businesses and Texas Franchise Tax page: comptroller.texas.gov/taxes/franchise/veteran-business.php
We have an online community that you can join for free. There are good resources and business tools there-- including a free small business course with over 100 short videos. Here’s the link: go.truic.com/48acqeL
Recommended formation service - We have negotiated with Northwest to provide the best discount and packages for our users, we get compensated when users use our discount links.
💼 Northwest 75% 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 link - go.truic.com/3tw60I5
Fees are as follows $29 + state fee of $310 + $9 for BOI (This is optional but recommended as failure to do so can result in a fine of $500/day)
📙 Texas LLC Formation Page
howtostartanllc.com/texas-llc
Thank you so much for this information! I have been searching all over and I must say that this video is by far the most helpful and informative I have found on RUclips :)
We appreciate that! Our team works hard to help small business owners. We have exciting things in the works at our Business Center. There are a variety of free resources there-- from starting your business to making it successful long-term.
howtostartanllc.com/business-center
So if you’re making over $1 million a year you don’t pay taxes that’s crazy and that’s good to know thanks 🙏
You do have to pay taxes on the income from an LLC.
But, instead of the income being taxed at the corporate level and then again when you get a distribution as an owner, an LLC is only taxed once, on your individual tax return.
The taxation is very similar to when a person is self-employed.
Thanks for the question and best of luck!
@@HowtostartanllcOfficial ❤️❤️
THANK YOU for the veteran tip. The fee is what has been prolonging the formation 👏🏾
Good luck!
@@HowtostartanllcOfficial @krispassmore what is considered a Veteran Verification letter?
We missed your reply. Thanks for your patience! We like to follow up much faster than this.
The Veteran Verification letter comes from the Texas Veterans Commission.
You can open this PDF and click "Connect with a business consultant" to get started with the Texas Veterans Commission.
The consultant will help you gather the documents you need to turn in. After you turn in the documents, they will provide you with the Veteran Verification Letter.
Here's the PDF: www.tvc.texas.gov/wp-content/uploads/2023/08/VVL-Qualification-Guide-as-of-August-23-2.pdf
clear concise everything i needed to know. thank you
Thanks for the feedback. We're very happy to support small business owners.
Thanks for your great explanation of the process. Now, if I have a company in Colorado and I need toget the Texas tax payer ID, what do I need to do? thanksin advance!
Thanks for the question! You get your Texas Taxpayer Number when you register with the Comptroller. If you're operating in Colorado and want to engage in business activity, lease or own tangible property, or sell taxable services in Texas, you'll have to form a foreign LLC in the state so that your business can get a file number from the SOS, which is required for the registration application
comptroller.texas.gov/taxes/permit/
comptroller.texas.gov/about/contact/
Here's a discounted link to form a foreign LLC in Texas: go.truic.com/3HgdBhH
At TRUiC, our mission is to offer free resources and information. We support our work by partnering with service providers, earning a percentage on some of the offers we’ve negotiated on your behalf. Northwest is one such partner.
Orlando Gamboa 411😊
I’m assuming you are speaking to non Texans that have no prior formal business experience. I’m skeptical of your generic approach.
Texas Series LLC has been around since 2009. Best Practice is to form a Series LLC.
That varies. If there will never be a need for a series and you do business nationwide a straight LLC avoids issues with states that do not recognize series LLCs and costs of management can certainly be higher. For many its best to KISS it, great for rentals and RE, yet all but useless for the majority of mom & pop outfits.
@@blackhole-z3m Are you a lawyer? How long? How many lawsuits have you prosecuted or defended? If you are not a licensed attorney do not espouse legal opinion. Since all Series LLC states borrowed their model from Delaware's series LLC statute I can assure you this is the best choice of business entity. And it is simpler than having multiple non Series LLCs. You would never want to hold all of your assets that are non-exempt assets in a single LLC as all assets in a single LLC would be at risk to any bogus or real creditors. Think of a LLC or a Series of a Series LLC as a "legal basket" that has charging order protection. Texas Series LLC law was drafted by Prof. Elizabeth Miller, Baylor Law School, she drafted it from Delaware law as most States adopted their Business Codes from Delaware Business law, but Prof Miller tweaked it to make it even stronger as an limited liability tool. Texas is a strong asset protection state to begin with by its constitution and by statute.
If you are doing business in another State you best form your LLC or Series LLC in that State. If not you must register your foreign LLC in that State to legally do business in that State. In Texas if you fail to register your foreign LLC or other business entity in Texas you cannot prosecute or defend a lawsuit in Texas, and pursuant to the Texas Business Commerce Code you are liable for both civil and criminal penalties to the State.
As an asset protection expert and long time litigation attorney I disagree with your simple opinion. It only takes one lawsuit against you, your company, or your assets to keep you up at night, especially if you have lumped everything into one legal basket. In Texas it is best practice to have a formal business entity act as the Manager of the underlying asset owning Series LLC. The Manager can be an existing entity an old fashioned LLC or even a Corporation, as it will never own any assets that a judgment creditor could potentially place a lien on or attach via a turnover proceeding. In my law practice I use a Texas Two Step or Three Step method for Asset Protection and Business Succession planning. In addition, I have clients that form Anonymous NM LLCs which is a great asset protection tool and State (better than NV, WY) as they use their Anonymous NM LLC to be the Manager of their Texas Series LLC. Regardless of the Choice of Entity you must observe the minimum formalities of the entity which is a low standard but again, in a lawsuit that is what a bogus or legitimate creditor looks for is that you did not observe the formalities. My 2 cents. My opinion is based on lots of business law, real estate law, insurance law, HOA law, and court house time prosecuting or defending lawsuits.
A series LLC allows business entities formed as LLCs to have a parent/ subsidiary structure similar to a group of corporations. One nice thing about this arrangement is that a series will not be burdened by the liabilities of another series. However, according to section 101.602 of the Texas Business Organizations Code, for a series to maintain its separate limited liability, it must keep separate records of assets. Bookkeeping-wise, it must be treated as a separate company. Some businesses may prefer not to complicate their admin systems in this way. Also, a business may just have one line of revenue-earning activity. And so there’s no reason to have a series LLC.
@@HowtostartanllcOfficial We can agree to disagree. However, your blanket statement there is no reason(s) to have a series LLC is not correct and completely misses the point of best practices and flexible simplification of operating businesses. Your reply misstates what I was saying in this old post. Are you a Texas attorney? How many lawsuits have your prosecuted and defended in Texas or other State? Legal reasons have little to do with best practice in accounting rules. It is not difficult to be in compliance with accounting rules and operate a Series of a Series LLC. As you know, Texas is a strong asset protection state and best choice of entity is a Texas Series LLC since 2009. Especially if you are an investor with multiple investment properties. The old fashioned and unsophisticated method is to form a separate LLC for each property or asset class. Why pay TX SOS $300 each time you need an entity? One of my clients a large portfolio of investment properties under the umbrella of their Series LLCs. Was easy to set up and maintain. You may want to read the legislative intent and the rules on liability in Texas. I refer you to Prof. E. Miller, Baylor Law, has written extensively on this area and drafted the TX Series LLC law. Texas would not have been the 8th State to pass the Series LLC law in 2009, and now 21? other States follow DE law and have the similar Series LLC laws. Are 21 States and District of Columbia all wrong? I guess all of the States with Series LLC laws are not correct and you are? Ridiculous. For separate LLCs, NM is a good place to form an an $50 LLC if you want low cost of entry and multiple separate LLCs and NM allows for an anonymous owner LLC if you use a NM firm to form and act as Manager. but you are still required to register your foreign entity in Texas to operate in Texas and be in compliance with TX Business Commerce Code.
Thank you for sharing your opinion. We wish to clarify that we did not make a blanket statement that there is no reason to have a series LLC. We do sincerely appreciate your sharing your extensive knowledge on the subject.
Is there any way to revive, without paying, an old corporation that i let go of years ago? I called and the fees and panaltys total up to well over 1000 or more ....i mean its cheaper to just get a new one but im partial to my old one.
Thanks for the question.
In what ways are you partial to the old one? Is it the name that you'd like to hold on to?
@@HowtostartanllcOfficial yes..the name. I owned 2 childcare centers and sold them. I didn't give up the corporation. I believe it's only $300.00 to file for a new corp so it's not expensive.
It is mostly likely the case that you will need to pay the fines and keep the name or start a new corporation and pick a similar name. BUT.
It wouldn't hurt checking with Texas regarding whether your old name is available (due to inactivity). It's doubtful but worth a shot: 512-463-5555 or email at corpinfo@sos.texas.gov.
Good luck and feel free to share the outcome-- someone along the line might benefit from the info.
Is there like an umbrella LC where I can do a form for multiple business names?
Thanks for the comment.
There are a few options. You can:
- Form an LLC as a holding company for other businesses (a little complicated)
- Register for multiple DBAs that fall under the umbrella of one LLC (easier)
- Create a series LLC (complicated)
Let us know if you have more questions. And, good luck!
Thank you for this amazing video!!!!!
You're so welcome for this amazing video!!
We're here to help if you need us.
Thank you for this information, extremely helpful. Appreciate your help!
You're welcome! 😊
thanks for the information very helpful and informative information
Thank you! Did you start your LLC?
Very helpful and this chick is fine
Very helpful!,
Were you able to start your LLC? How did it go?
Can you help those in Michigan as well? Thank you 🙏🏽
Of course, we are updating all of our guides in each state, in the meantime here is our updated written guide: howtostartanllc.com/michigan-llc
And if you have any questions feel free to ask here and we will do our best to answer!
Thank you so much for the information and video! I need this in info and been looking on all site and I liked this one best.
Glad it was helpful! You can subscribe to the channel and visit our website for more help with everything small business.
TRUiC.com :)
This was sooo very helpful. Thank you for the information.
We're glad to help!
You can find more free resources and business tools at our business center: howtostartanllc.com/business-center.
Fantastic video!! Very detailed and to the point!👏🏽👏🏽👏🏽
Thanks so much for watching!
Best of luck to you.
really easy to understand, thank you!!
Glad to hear that!
One of the most clear and concise videos on forming an LLC in Texas. Really digging the old school digital watch! Thank you!
Happy to help, thanks for watching! We appreciate the kind words.
Here's our most discounted link for LLC formation ($29 plus state fees): go.truic.com/45hplKy
Best of luck with your small business.
At TRUiC, our mission is to offer free resources and information. We support our work by partnering with service providers, earning a percentage on some of the offers we’ve negotiated on your behalf. Northwest is one such partner.
Thanks Great Information!
One Question: after filling the Operating Agreement where we gonna send this? ALSO is this one time filling or we need to fill each year?
Thanks for questions.
You will keep the operating agreement in your records, no need to send it anywhere.
The LLC is registered one time. You'll need to submit a "public information report" each year. This report, which is due by May 15 every year, is designed to provide updated and accurate information to the state regarding your business.
There's also a franchise tax report that is due each year if the business earns more than $2.47 million in annual revenue.
Right on! Thanks
🙌
Thank you
We're really happy to help! Good luck and let us know if you have any questions.
Thanks a lot it helping a lot GBU
Very, very happy to help!
Thank you so much for providing this valuable information. I am in the process of restructuring my hair business, I just relocated from Michigan and I have been doing extensive research as to what is required for me to now operate my business in the state of Texas.
I was Leary about operating as a foreign entity for several reasons. This information will help me to create an LLC in the state of Texas and transition my business seamlessly for a reasonable price. 🙏🏾🙏🏾
You are so welcome!
Thank you for watching and best of luck to you.
These are not steps , these are slides. Steps are are to go to sos website and show click by click
Thanks for the feedback, we are working on just that!
Where do I get the veteran form?
The Form 05-904, Certification of New Veteran-Owned Business can be downloaded from the New Veteran-Owned Businesses and Texas Franchise Tax page: comptroller.texas.gov/taxes/franchise/veteran-business.php
Thanks was helpful
Happy to help! Thanks for watching:)
Thanks for this I was lost. Lol
Happy to help! Thanks for watching.
Is there a way to start a successful LLC in Tennessee.
Absolutely, what kind of business do you have? Or, what kind would you start?
We have an online community that you can join for free. There are good resources and business tools there-- including a free small business course with over 100 short videos.
Here’s the link: go.truic.com/48acqeL
Great video and links
Thanks for watching!
Great information!! Thank you for posting.
Glad it was helpful! 😊
Thanks!
Thanks, we're so grateful to be supporting small business owners!