The Texas
Secretary of State formed over 69,000 State of Texas LLC entities in
2007 alone. What is even more astounding is that the growth of
the # of formations has grown by close to 10% every year.
The small business
owner community in Texas definitely understands the benefits of
advantages of the Texas limited liability company over a sole
proprietorship structure or other legal entity alternatives.
This is the result
of the constant improvement of the Texas LLC laws every year.
Texas lawmakers want to encourage entrepreneurship and have
facilitate this by creating a business vehicle that offers not only
liability protection to business owners but simplicity and
flexibility to accommodate most any business situation.
The Texas business
organizations laws are more complex than most other states and this
is in part due to the desire to ensure that the laws remain flexible
enough to help small business owners throughout the life cycle of a
business (from start-up to become potentially a very large
business).
The most important
matter when it comes to forming a State of Texas LLC is to ensure
that it is properly organized in strict compliance with Texas
limited liability company and business organizations requirements.
The State is quite peculiar about name compliance and also about
strictly enforcing the disclosure and reporting requirements on
formation documents.
Failing to properly
meet name and other formation rules can result in lengthy delays in
processing and challenges to get a filing back on track. Even
worse, a faulty filing may later cause risk to your personal
liability protection.
