Starting a business in Texas? Wondering if LLC registration is worth it? Read Mike Vestil’s guide to understand the basics of registration and the benefits. Learn from a successful entrepreneur who knows a thing or two about the ins and outs of launching profitable companies.
Considering applying for LLC status in Texas? Wondering how to go about it?
Read renowned entrepreneur Mike Vestil's new LLC guide for businesses! More details at https://www.mikevestil.com/guides/how-to-start-an-llc-in-texas-for-free/
The guide covers everything from filing certificates of formation to obtaining business licenses and opening business bank accounts. It is part of a series of guides that detail the registration process for all states, offering a useful summary of essential paperwork and processes for your LLC application no matter where your business is based.
The guide explains that, while most individuals are liable for state registration fees—typically $300 in Texas—veteran-owned businesses are eligible to have filing fees waived as of January 2022. If you're a veteran, you can also access a five-year exemption from franchise taxes.
A certificate of formation, the piece explains, contains basic information such as the name and address of your business, its purpose, and the address and contact details of the registered agent. You can act as your own agent, which reduces costs, but you must have an address in Texas and be available at that location during working hours to receive important legal, financial, or tax documents.
Mike underlines the importance of obtaining a certified copy of the certificate of formation as official proof of certification and registration with the state authorities. This will typically cost you an additional $30.
Another important aspect of LLC formation is opening a dedicated business bank account. Mike explains that this separates your business and personal assets, which has important implications for liability. Such accounts can help reduce your taxes and make it easier for potential investors to perform due diligence on your business.
Other necessities include filing an annual report with the state controller's office, which provides updates on any changes in ownership or your business activities.
Mike highlights some of the advantages of attaining LLC rather than corporation status. LLCs, for instance, enjoy "pass-through" taxation, which means these companies do not have to file corporate tax returns and, crucially, their members are not liable for the company's debts. Corporations must also have a board of directors that decides how the company is run, whereas with an LLC, you can rely solely on your members to make operational decisions.
The guide states, “If an LLC or a corporation isn't suitable for your needs, you can also establish other types of businesses in Texas. These include sole proprietorships and partnerships. Both offer benefits and drawbacks depending on your company's operations and how many people are running it.”
For the ultimate LLC lowdown, you can trust Mike Vestil!
For more info, go to https://www.mikevestil.com/
