TEXAS BUSINESS ORGANIZATIONS CODE

TITLE 3. LIMITED LIABILITY COMPANIES

CHAPTER 101. LIMITED LIABILITY COMPANIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 101.001. DEFINITIONS.

In this title:

     (1) “Company agreement” means any agreement, written or oral, of the members concerning the affairs or the conduct of the business of a limited liability company. A company agreement of a limited liability company having only one member is not unenforceable because only one person is a party to the company agreement.

LLCs

People starting out a new Texas business are often faced with the decision to form either a corporation or an LLC. While your ultimate choice of entity depends on many factors and should be talked over with a Texas business lawyer, here are a few situations where I almost always recommend an LLC:

Small Family Owned Business

An LLC is often a good choice when one or more family members plan to start a business, keep it in the family, and provide each business partner a set percentage of ownership from the beginning.

Every registered business organization in Texas is required to have both a registered agent and a registered office. Both of these must be kept updated with the Secretary of State. Failure to keep this information up to date can lead to your company getting sued without you ever knowing it, leaving you with no opportunity to answer the lawsuit, which in turn leads to default judgments against your company.

Our custom-designed, full-service incorporation packages give you everything you need, nothing you don’t. Pay upfront for a discount or setup a payment plan for an additional cost. Filing fees are not included in the package.

The short answer is “no,” a lawyer is not required to fill out the appropriate paperwork, pay the filing fee, and file it with the Secretary of State. Many business owners go this do-it-yourself route, some successfully, others not so much. What many people do not realize, and what LegalZoom, RocketLawyer, BizFilings, and others fail to mention, is that properly starting a business involves more than merely filing the correct form with the correct government agency; that is but one piece of the puzzle. Many other factors must be considered, including: choice of entity type, choice of state, tax considerations, permitting requirements, employment considerations, state and federal rules and regulations regarding securities laws, and inter-partner planning to name a few, and this is where a Texas Business Lawyer earns his pay.