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Creating an LLC in Texas – My Beginner’s Guide on How to Start a Limited Liability Company Without Paying a Service

how to start llc texas

Shifting your sole proprietorship or informal hobby or business to a limited liability company “LLC” is a prudent move because it decreases the likelihood you’ll be personal liable for things done in the course of business.

In other words, forming an LLC is a positive step towards risk reduction.

The problem is most people are beginners to entity formation and end up paying some service $95-$595+ just to file their Certificate of Formation (Form 205) for them; they don’t know that Form 205 really isn’t complicated.

What ends up happening is the commercial services take your money and turnaround and ask you all the same questions Form 205 is asking and then file with the Texas Secretary of State.

If your budget is at all a concern, you can immediately lower this cost by filling out Form 205 and filing it yourself.

What I noticed is many of the free online guides run through the process, providing just enough information to make you think registering with the state is harder than it is and then conveniently placing an ad for their LLC filing service right next to it.

Noting the gap in the marketplace, I created The Texas LLC Guide to help DIYers file their LLC with the Texas Secretary of State. The website is TexasLLC.org.

The guide is written in plain English and contains a step-by-step breakdown and explanation of each fill in the blank question asked in the Certificate of Formation. I’ve written it an unofficial supplement to the instructions on 205.

Inside the guide (a downloadable PDF), I also write about some of the key things you need to be aware of when forming an LLC. For example, you will need an Operating Agreement for your LLC.

Although it’s not legally required, an Operating Agreement is crucial to the existence of your LLC. Not only does it help with personal asset protection (since it’s an important document in showing you operate your company separate from your person) but it also outlines membership interest, how the company is to run, etc.

My guide takes less than 30 minutes to read and costs $15-$20 but will save DIYers money on their initial filing with the state and help them better understand how to run their Texas Limited Liability Company.

Buy the guide at TexasLLC.org or if you have any pre-sales questions, leave a message the Facebook page or comment below and I’ll answer general information questions (nothing specific to your company or situation – you have to hire an attorney for that).

Follow me @krisrivenburgh for random, unbalanced, and many times contrarian thoughts.
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