LLC Basics
What does LLC stand for?
Limited Liability Company
How do you check if a business name can be used in Texas?
By searching the Texas SOSDirect name database.
What is the filing fee for Form 205 accomplish?
$300
What is an EIN?
An Employer Identification Number issued by the IRS.
How long does online LLC approval usually take?
About 2–5 business days.
Why would an entrepreneur choose an LLC?
Provides limited personal liability and flexible taxation with fewer formal requirements.
What official form must be filed to create an LLC?
Form 205-Certficate of Formation
What does Form 205 accomplish?
It legally creates the LLC in Texas
Why does an LLC need an EIN?
For taxes, hiring employees, and opening a business bank account.
How long does mail‑in approval usually take?
About 1–2 weeks.
Who controls LLC's in Texas?
The Texas Secretary of State
Where is the Form 205-Certificate of formation submitted?
Sent to the Texas Secretary of State either online, by mail, or in person.
What optional form can reserve a business name for 120 days?
Form 501- Name Reservation
What annual tax report must all Texas LLCs file?
The Texas Franchise Tax Report.
What licenses or permits might a Texas LLC need?
Sales tax permits, professional licenses, and local city/county permits.
What's the first step in forming an LLC?
Choosing a unique business name that meets Texas naming rules.
What must a Registered Agent have in Texas?
Consent to serve as agent and a physical street address.
What internal document outlines ownership and rules for an LLC?
The Operating Agreement
What is the Public Information Report (PIR)?
A required annual report listing the LLC’s owners and managers.
Which Texas agency issues sales tax permits?
The Texas Comptroller of Public Accounts.
What is a Registered Agent?
A person or business with a physical Texas address who accepts legal documents for the LLC.
What management structures options can a Texas LLC choose?
Member-managed or manager-managed?
Why is an Operating Agreement recommended even though Texas doesn’t require it?
It prevents disputes by defining ownership, responsibilities, and decision‑making rules.
What taxes might a Texas LLC owe besides franchise tax?
Sales tax, employment taxes, and industry‑specific taxes.
What step must be completed before opening a business bank account?
Obtaining an EIN from the IRS.