Texas maintains a great climate for starting a small business – over three million Lone Star entrepreneurs will agree. While some of these new business owners form sole proprietorships, partnerships, and corporations, a large percentage choose to set up their endeavors as limited liability companies.
There are many advantages to becoming an LLC, but it also requires you to invest some time and money in it. You will need to file some paperwork with the state and there are costs involved, but that doesn’t necessarily mean that you have to do it by yourself. There are LLC formation services available to assist you, and this post will cover the top five services for starting your LLC in Texas.
Disclaimer: the rates and offerings below are subjected to changes made by the service providers.
Best Texas LLC services of 2024
One of the first decisions for a new business owner is choosing the legal structure of their company. Each option has pros and cons. With sole proprietorship and partnerships, personal liability is unlimited. If there’s a lawsuit or other major financial issue, you could lose personal assets like your home and bank account. Corporations protect your personal assets – you can lose only as much as you’ve invested – but they can be subject to double taxation. They pay corporate tax on their profits, and dividends paid to the owner can be taxed again as personal income.
LLCs combine the advantages of proprietorships/partnerships and corporations. They are pass-through entities; income flows directly to the owners with no corporate tax. Also, the liability of the owners is limited, and they aren’t at risk for any more money than they have invested.
Limited liability and favorable tax treatment aren’t the only benefits of forming an LLC in Texas. Here are a few more:
To form an LLC in Texas, you must file a certificate of formation with the Secretary of State. You’ll need to choose a name, file articles of organization, create an operating agreement, file for a federal employer identification number (EIN), and meet all the tax and reporting requirements (such as filing an LLC annual report).
You’ll have to pay the one-time Texas LLC registration fee. For most businesses based in Texas, that’s $300. If you’re a veteran, you may be eligible for a reduced fee. If your business is based outside of Texas, the fee is $750.
Every LLC must name a registered agent. This is the party that receives official correspondence on behalf of the business. If you have a Texas address, you can be your own registered agent. However, you have to be at the address consistently. Many entrepreneurs find it worth the expense, usually $100 to $200 per year, to pay someone to be their agent. LLC formation companies offer this as one of their services.
In addition to acting as your registered agent, LLC formation services can complete all of your Texas state filings, create your operating agreement, file articles of organization, and apply for your EIN. Most of them offer other ongoing services such as tax and compliance reporting.
Here are five best LLC services. Note that the prices listed do not include the $300 Texas registration fee.
Tailor Brands has a business building platform that support the various step required to start and grow a business. LLC formation is one of their services.
Tailor Brands will register your LLC as well as create an operating agreement, act as a registered agent, and obtain licenses and permits. We consult on insurance and taxes, and provide comprehensive branding services such as logo creation, domain registration, website design, business email, business cards, and branded merchandise.
There is a free LLC option that allows you to initiate the process in a few minutes, and pay only the Texas state fees.
The Essential package runs $199 and includes an operating agreement and compliance service.
The $249 Elite package includes domain registration, a website builder, eight logos, business cards, and a social media generator.
Tailor Brands is the top choice for those who want to launch their LLC, set up their business and build a brand identity from the get-go.
ZenBusiness also offers a suite of business launch services. These support S-Corporations and C-Corporations in addition to LLCs.
ZenBusiness can file an LLC registration, create the operating agreement, serve as a registered agent, and obtain an EIN. Auxiliary services include business bank accounts, bookkeeping, logo building, and a website builder. Service selection is menu-driven; you choose whichever ones you want.
There is a free version as well as a Pro version at $199/year and Premium at $349/year. You can supplement the lower-cost versions with additional choices from the menu.
ZenBusiness offers an ongoing business partnership and would be an appropriate choice for entrepreneurs who desire continuing support.
Swyft Filings concentrates on company formation for LLCs corporations, and non-profits. They don’t offer the supplemental marketing services that some others do.
Swyft Filings will file the required initial documents, prepare the operating agreement, obtain an EID, assist with licenses and permits, and serve as a registered agent. They do not provide marketing or branding tools. Their offerings include ongoing phone support, and each customer gets their own business specialist.
There is a free package with the basics to get started. More services are included with the $199 Basic package and the $299 Premium Plus package. None of the packages include registered agency, which is provided at a $99 annual fee.
Swyft Filings is best for businesses that want LLC services only, without additional branding and marketing support. Formation is quick and simple.
Rocket Lawyer, as the name suggests, puts an emphasis on legal services. They offer a comprehensive membership for “everything legal.”
In addition to LLC formation, Rocket Lawyer provides AI-based branding services such as logo creation. They have tax services, legal consultation, and personalized support.
The base price is $99.95. Unlike most other LLC formation services, Rocket Lawyer does not offer packages. Instead, your total cost depends on the services you select. To get a price quote, you answer some questions about your business, and RocketLawyer responds with options. There is a 7-day free trial on membership.
Registered agency service is $149.99 per year.
Rocket Lawyer is not as friendly as some in clarifying what services are necessary or providing step-by-step guidance. It is a good choice for those who have an understanding of what they need.
Northwest will register your LLC, obtain an EIN, and create a customized operating agreement. They offer ongoing services such as registered agency and compliance reporting. They operate branches in all states and provide individual guides who are familiar with rules and procedures in Texas.
Once you sign up for an account, you can, at no cost, follow a step-by-step guide to download forms and file them yourself. For a further fee, Northwest will handle all the startup tasks including creating the operating agreement. Registered agent service is $125 per year, and compliance reporting is $100.
Once you sign up for an account, you can, at no cost, follow a step-by-step guide to download forms and file them yourself. For a further fee, Northwest will handle all the startup tasks including creating the operating agreement. Registered agent service is $125 per year, and compliance reporting is $100.
For those who are comfortable doing the tasks themselves, the free guide is a useful offering. The paid service is especially useful for those who have questions specific to the regulations in Texas.
If you have the time to learn and to do the work yourself, you can DIY your Texas LLC formation. There is plenty of online help available. However, it takes some effort to create Articles of Organization and write an operating agreement. With costs at a few hundred dollars, many entrepreneurs will prefer to delegate these tasks to a formation service so they can spend their time on things that are more critical to their success. They find their efforts better expended on refining their products or services, developing and working on their business plans, and establishing a presence in their target markets.
Also, there’s an added confidence factor in turning work over to a professional. An LLC formation company has done this thousands of times, and there’s less worry that something will be left out or done incorrectly.
The benefits of an LLC, especially the tax and liability advantages, make a compelling argument for choosing that structure. As a new business owner, you might find the idea of forming a legal entity intimidating. However, LLC formation services take this work off your plate. These five best LLC formation services set you up with an ideal business structure, while you gain the benefits of an LLC at a cost that’s worth the time and uncertainly it avoids.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
Terry is a serial entrepreneur with over 25 years of experience building businesses across multiple industries – construction, real estate, e-commerce, hotelier, and now digital media. When not working, Terry likes to kick back and relax with family, explore Taoism’s mysteries, or savor the taste of fine Italian red wine.
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