The cost to start a Texas LLC yourself is $300 ($308.10 if you pay with a credit card). This amount equals the filing fee charged by the Texas Secretary of State to file the Certificate of Formation. This amount does not include service fees, internal LLC paperwork, registered agent services, EIN, etc. The cost to have a lawyer form an LLC …
Should I include my spouse as a owner of my LLC?
You are essentially deciding between a single-member LLC and a multi-member LLC. Whether or not to include your spouse as a owner of your new LLC depends on his/her desired involvement. A single-member LLC (SMLLC) is much less complicated. From a tax perspective, a SMLLC is considered a disregarded entity meaning the SMLLC’s profits are simply included on the owner’s …
How hard is it to change ownership in an LLC?
It depends on the situation. If, for example, you are selling your business by way of selling membership interest to a third party or bringing in investors, the process can require a complex set of documents including a Letter of Intent, Subscription Agreement, and a complex Membership Transfer Agreement. On the other hand, if the transfer is relatively straight forward …
What are the rules for naming a Texas LLC?
Some may say it’s better to ask forgiveness than ask permission — but when it comes to naming your Texas LLC, the rule does not apply. Choosing the wrong name can have serious consequences, especially if the name you select already belongs to another business. The Texas Secretary of State (TXSOS) website is a good place to start reviewing the various naming rules. We realize it’s a lot to read — so we’ve outlined some of the most important rules in this post.
Should I trademark the name of my LLC?
There are some instances when trademarking your LLC name could be beneficial, and others where it might not be necessary. We’ll outline some scenarios where it would make sense to apply for a trademark.
Can I revoke an S Corp Election?
To revoke an S-election, the entity will need to file a revocation statement with the IRS at the same service center that the S-Election (Form 2553) was filed. You can find this address by looking at the Where To File in the Instructions for Form 2553. In the revocation statement, the the entity must notify the IRS that it is …
Single Member LLCs
We are often asked if a Texas LLC can be owned by a single member/owner. Single-Member LLCs (SMLLCs) are allowed in Texas and they are very common. For tax purposes, the IRS considers a Single Member LLC a “disregarded entity.” In other words, the IRS will tax the business just like it would tax a sole proprietorship. The profits (or …
Why would an LLC want to be taxed as an S Corporation?
An LLC is a pass-through entity unless you tell the IRS otherwise. In other words, profits and loses are passed through to the LLC’s owners. One reason an LLC would want to be taxed as an S corporation is to save money on self-employment taxes (i.e. medicare & social security). As of the writing of this article, self-employment taxes equaled …
What is an S Corporation?
An “S corporation” is essentially a traditional corporation (C corp or professional corporation) that elects pass-through tax status. It is important to note, however, that an LLC can also elect to be taxed as an S corporation. To make this election, the entity would notify the IRS by filing Form 2553 with the IRS (the S Election). Once the corporation …