TEXAS BUSINESS ORGANIZATIONS CODE

TITLE 3. LIMITED LIABILITY COMPANIES

CHAPTER 101. LIMITED LIABILITY COMPANIES

SUBCHAPTER C. MEMBERSHIP

Sec. 101.101. MEMBERS REQUIRED.
(a) A limited liability company may have one or more members. Except as provided by this section, a limited liability company must have at least one member.
(b) A limited liability company that has managers is not required to have any members during a reasonable period between the date the company is formed and the date the first member is admitted to the company.
(c) A limited liability company is not required to have any members during the period between the date the continued membership of the last remaining member of the company is terminated and the date the agreement to continue the company described by Section 11.056 is executed.

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.