There are various types of business structures. They include sole proprietorship, general partnership, limited liability company (LLC), limited liability partnership, C Corporation, and Sub-chapter S corporation. An entrepreneur has to make a decision on the kind of structure to opt for. He can settle for Limited Liability Company. If he is in the US, he will need to decide on the state of incorporation. This can be Texas. Each state has its own unique rules and regulations relating to incorporation. There are steps that have to be followed in relation to Texas LLC formation Houston TX.
Finding a common mission and vision is a core step in LLC formation. Most startup founders normally ignore this step and they end up regretting. If shareholders do not have a common vision, the chances of failure will be high. With a common vision, there will be laser light focus on the goals of the company. This is the kind of focus required for success.
A limited liability company needs to have a name. This will be used in identifying the company. The name that has been identified will have to be registered with the Registrar of Companies in Houston, Texas. A name that is already being used by another LLC cannot be used. A unique business name is required before the registration exercise can take place.
Shareholders have to brainstorm on the name to choose. They can combine some initials from all their first names and subsequently create the company name. They can borrow an idea from a popular book or movie. The various name suggestions have to be searched to find if there are companies that have any of the names. Name registration should also happen.
The step of finding a registered agent is not mandatory. However, many LLCs that have been incorporated in Houston have registered agents. That is because the shareholders are not physically present in Texas. The registered agent will receive all the company's correspondence. Thus, he should be physically based in Texas. Having a P. O. Box address is not enough for registered agents.
Creating the articles of organization is another step. The shareholders can draft this themselves. Alternatively, they can enlist the help of an attorney. This document will contain the basic information of the company. The name of the company as well as its primary address should be indicated. The articles of organization should also state how the company will be managed.
Another document to be drafted is operating agreement. This will have information on the operational aspects of the company. If an operating agreement is lacking, disagreements will be common. The shareholding of each shareholder will be clearly specified. The process of dispute resolution must be indicated. How to share profits and losses of the company must be clearly explained.
It is not easy to form a Limited Liability Company. There are a number of steps involved. Some documents also have to be drafted. Starting an LLC also requires shareholders to raise a significant amount of capital and to pay an incorporation fee. However, there will be limited liability protection. This will protect the personal assets of shareholders from creditor claims and lawsuits.
Finding a common mission and vision is a core step in LLC formation. Most startup founders normally ignore this step and they end up regretting. If shareholders do not have a common vision, the chances of failure will be high. With a common vision, there will be laser light focus on the goals of the company. This is the kind of focus required for success.
A limited liability company needs to have a name. This will be used in identifying the company. The name that has been identified will have to be registered with the Registrar of Companies in Houston, Texas. A name that is already being used by another LLC cannot be used. A unique business name is required before the registration exercise can take place.
Shareholders have to brainstorm on the name to choose. They can combine some initials from all their first names and subsequently create the company name. They can borrow an idea from a popular book or movie. The various name suggestions have to be searched to find if there are companies that have any of the names. Name registration should also happen.
The step of finding a registered agent is not mandatory. However, many LLCs that have been incorporated in Houston have registered agents. That is because the shareholders are not physically present in Texas. The registered agent will receive all the company's correspondence. Thus, he should be physically based in Texas. Having a P. O. Box address is not enough for registered agents.
Creating the articles of organization is another step. The shareholders can draft this themselves. Alternatively, they can enlist the help of an attorney. This document will contain the basic information of the company. The name of the company as well as its primary address should be indicated. The articles of organization should also state how the company will be managed.
Another document to be drafted is operating agreement. This will have information on the operational aspects of the company. If an operating agreement is lacking, disagreements will be common. The shareholding of each shareholder will be clearly specified. The process of dispute resolution must be indicated. How to share profits and losses of the company must be clearly explained.
It is not easy to form a Limited Liability Company. There are a number of steps involved. Some documents also have to be drafted. Starting an LLC also requires shareholders to raise a significant amount of capital and to pay an incorporation fee. However, there will be limited liability protection. This will protect the personal assets of shareholders from creditor claims and lawsuits.
About the Author:
To get assistance with your Texas llc formation Houston TX CPA is at your service. Contact this certified professional accountant now via http://www.znbcpa.com/accounting-services.
