My Notary Shoppe

FAQ LLC

How Do I Maintain an LLC in Texas?

Once you’ve formed your LLC, keeping it compliant is essential to avoid penalties and maintain its benefits. Here’s how to do it:

1. File Annual Franchise Tax Reports

  • Texas LLCs must file a Franchise Tax Report and a Public Information Report with the Texas Comptroller.
  • Due annually on May 15th.
  • LLCs earning below a certain threshold may owe no tax but must still file these reports.

2. Maintain a Registered Agent

  • Your LLC must have a registered agent with a valid Texas address to receive legal notices and correspondence.
  • Update the agent’s information promptly if it changes.

3. Keep Business Records Updated

  • Notify the Secretary of State if there are changes in your LLC’s address, registered agent, or management structure.
  • Pay a filing fee for amendments.

4. Renew Business Licenses and Permits

  • Ensure all necessary business licenses and permits are renewed annually or as required.
  • Check local, state, and federal regulations for compliance.

5. Stay Organized

  • Keep thorough records of your LLC’s finances, meetings, and decisions.
  • While Texas doesn’t require an operating agreement, having one helps clarify roles and procedures.

What is a Texas DBA?

A DBA (Doing Business As), also known as an Assumed Name in Texas, allows a business to operate under a name different from its legal name.

Why Get a DBA?

  • Flexibility: If your LLC is named “ABC Enterprises LLC,” but you want to operate as “ABC Web Design,” a DBA lets you legally use the new name.
  • Branding: It allows you to create a more marketable or specific name for your business operations.
  • Multiple Businesses: If your LLC offers various services, you can file a separate DBA for each without creating new LLCs.

How to File a DBA in Texas

  1. Conduct a name search to ensure your desired DBA is available.
  2. File an Assumed Name Certificate with the county clerk’s office or the Texas Secretary of State, depending on where you conduct business.
  3. Pay the required fee (usually between $10-$25 at the county level or $25 at the state level).
  4. Renew your DBA every 10 years.

The Benefits of Forming an LLC in Texas

Forming a Limited Liability Company (LLC) in Texas comes with several advantages, making it a popular choice for entrepreneurs and small business owners. Here’s why you should consider starting an LLC in the Lone Star State:

1. Limited Liability Protection

An LLC protects your personal assets (like your home or savings) from business liabilities. If your business incurs debt or faces legal action, your personal belongings are shielded from being used to settle business obligations.

2. Flexible Taxation Options

LLCs are not taxed as separate entities like corporations. Instead, profits “pass through” to the owners’ personal income, avoiding double taxation.

  • You can choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation.

3. No State Income Tax

Texas is one of the few states with no personal income tax. This means LLC owners can keep more of their earnings, whether they are taxed as individuals or corporations.

4. Business-Friendly Environment

Texas consistently ranks as one of the most business-friendly states in the U.S. with low taxes, minimal regulation, and a thriving economy.

5. Easy Management

Texas LLCs offer flexibility in how they are managed. You can choose between:

  • Member-Managed: All owners are actively involved in the business.
  • Manager-Managed: Designated managers run the day-to-day operations.