How much does it cost to form a Texas LLC?

Zachary Copp, Esq. LLC Leave a Comment

The cost to start a Texas LLC yourself is $300 ($308.10 if you pay the filing fee with a credit card).  This amount equals the filing fee charged by the Texas Secretary of State to file the Certificate of Formation, but does not include service fees, internal LLC paperwork, registered agent services, EIN, etc. The cost to have a lawyer form …

Should I include my spouse as a owner of my LLC?

Zachary Copp, Esq. LLC 18 Comments

What are the pros and cons to including my spouse as an owner of my new LLC? Since Texas is a community property state, won’t my spouse own 50% of my new LLC anyway? 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 …

How hard is it to change ownership in an LLC?

Zachary Copp, Esq. LLC 4 Comments

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?

stevelaw LLC, Naming 6 Comments

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.

Can I revoke an S Corp Election?

stevelaw LLC, S Corporation Leave a Comment

An LLC (or corporation) taxed as an S-Corporation CAN revoke a previously filed S-Election provided the decision to revoke as the proper consent (a majority vote of the shareholders/members at a minimum).How to Revoke an S-ElectionTo 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 …

Single Member LLCs

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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 SMLLCs are one of the most common small business structures. In this post we will do a deep dive into the single-member LLC.What is a Single-Member LLC?An owner of an LLC is called a “member”. As such, …

Why would an LLC want to be taxed as an S Corporation?

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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?

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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 …