STEP 4. How to register a business in Texas
1. The cost to register a business
In Texas, the filing of an Assumed Name Certificate with the county clerk’s office will come with a small fee – each county charges its own fee.
For LLCs, corporations and limited partnerships, filing with the Texas Secretary or State will incur a fee for each Assumed Name Certificate of approximately USD30.
2. Steps to register a business
How to register an LLC in Texas
a) Elect a Texas Registered agent
For an LLC, you are required to nominate a Texas Registered Agent. The registered agent that you nominate must be a resident of Texas or a registered agent service that is authorised to do business in Texas. You can also elect either yourself or someone within your company.
b) File the Texas Certificate of Formation
Next, you will need to file the Certificate of Formation with the Secretary of State, either via mail or online.
The filing fee is approximately USD300.
c) Draft an operating agreement
Operating agreements aren’t required by the state of Texas, but experts stress that you have one in place. Your operating agreement outlines how you will run your LLC and sets out the rights and responsibilities of your managers.
Should you decide not to draft an operating agreement, state LLC law will govern how your LLC operates.
How to register a partnership
a). General Partnerships: You will need to file a DBA registration with the Texas Secretary of State.
b). Limited Partnership: Limited Partnerships must file a Certificate of Limited Partnership.
c). Limited Liability Partnerships: Complete a Registration Application with the Texas Secretary of State.
d). Limited Liability Limited Partnerships: File an Application for Registration of an LLP with the Texas Secretary of State.
How to register a corporation
a) File a Certificate of Formation
Similar to an LLC, corporations must file a certificate of formation with the Texas Secretary of State. The certificate must include the following:
- The corporate name and address
- The name and address of the registered agent
- The nature of the business
- The number of shares the corporation is authorised to issue
- The name and address of the organiser
- The names and addresses of board of directors
- The effective date of certificate
b) Appoint a Texas registered agent
As with an LLC – corporations will need to appoint a Texas registered agent, whether this be a corporation or an appointed individual within your organisation.