Almost 70,000 Limited Liability Companies were created in Texas during 2007. This kind of business entity is the most popular legal entity in the state.
A Texas Limited Liability Company can provide tax benefits and legal protection for the owners of the LLC. The most common Texas LLC is formed by small businesses, but Texas law allows four LLC types: domestic, professional, non-profit, and foreign.
CREATING A DOMESTIC TEXAS LLC
A Domestic Limited Liability Company is used by small businesses and joint ventures. Provided the LLC is formed for a legal purpose, it has very few legal restrictions on what the business must be. This flexibility makes it the most popular LLS in Texas.
LLCs can outlast their founders and be used for many purposes. The documents that form the LLC must be carefully written to comply with all of the Texas requirements and to ensure that the LLC will do what the creators intended it to do for as long as it lasts.
CREATING A PROFESSIONAL TEXAS LLC
Licensed professionals, such as physicians, lawyers, and architects can create a Professional Limited Liability Company to be the business entity under which they provide their licensed services. Like the domestic LLC, there are tax and legal advantages to creating the LLC. However, a professional LLC is limited to only providing those services for which the owners have professional licenses.
CREATING A NON-PROFIT TEXAS LLC
If a Texas charity or other non-profit organization wishes, it can create a non-profit Texas limited liability company. A non-profit LLC has many of the same advantages of a non-profit corporation, but it is easier to create.
Social groups such as business associations also qualify to create a non-profit LLC. However, the LLC will not be a tax-exempt entity unless it also meets other Texas requirements. A specialist in creating Texas LLCs can guide you to making the tax elections, the choices that get you the proper tax status.
CREATING A FOREIGN LLC IN TEXAS
The most complex LLC creation is the “Foreign LLC. This allows an LLC that was created in any of the other 49 states to expand their business to Texas. The foreign LLC must begin by filing for a certificate of authority with the Texas Secretary of State, then follow the appropriate Texas LLC laws.
Creating a foreign LLC in Texas does not change the terms and conditions of the LLC. It remains subject to the laws of the state where the original LLC was created. The foreign LLC must also obey the Texas laws that apply to it.
____
For small business, the domestic LLC is the right choice of Texas limited liability company entities.
CLICK HERE Now for a FREE Texas LLC Guide summarizing the Benefits to Business Owners or for a FREE Texas LLC Name Search: http://www.TexasBusinessFormation.com
If you need to register a foreign LLC in Texas, click here for information about a service to handle that for you: Foreign LLC Registration
