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Texas LLC Requirements

 

 

The Texas LLC Requirements for forming a Texas limited liability company are governed by the Texas Business Organizations Code which was enacted in 2003 (effective 2006) and, in particular, Title 3 which is the Texas Limited Liability Company Law.

 

Texas LLC Names:  The name of a Texas limited liability company must contain the words "limited company" or "limited liability company" or the abbreviation L.C., LC, L.L.C. or LLC.   The Texas LLC requirements mandate that the name must be distinguishable from the name of any active domestic or foreign LLC or corporation filed with the state of Texas or any business name filed.

 

Duration: The Texas LLC Requirements automatically give a Texas limited liability company perpetual duration unless a more limited duration is noted in the formation documents.

 

Purpose:  The Texas LLC Requirements require that the Texas limited liability company state a purpose in its formation documents but the purposes may be broad to include any lawful business purpose under Texas LLC laws.

 

Texas Registered Agent and Office:  Every Texas limited liability company must have and continually maintain a registered agent and registered office in Texas. Texas LLC requirements prevent the use of a business private mail box or a P.O. box for the registered office (unless the office is in a city with a population of less than 5,000). 

 

Members: Texas LLC Requirements allows a Texas LLC to only have 1 Member and there are no restrictions on who can be a Member.  So, any individual, corporation, trust, partnership or another LLC may be an owner (Member) of an LLC.

 

Texas LLC Operating Agreement:    While Texas LLC Requirements and law do not specifically require a written Operating Agreement, many of the provisions of the Texas LLC laws contemplate that a Texas limited liability company have an Operating Agreement.  An Operating Agreement is the most important document for a Texas limited liability company as it establishes the owners of the LLC and a management structure for an LLC.  In some sections of Texas LLC laws, this agreement is referred to as the "Company Agreement."

 

Management:  Texas LLC Requirements mandate that the formation documents of a Texas limited liability company contain a provision addressing the management structure. If the Texas limited liability company is member managed, the names and addresses of the initial members must be included.  If the Texas limited liability company is manager managed, Texas LLC requirements require that the names and addresses of the managers be included.

 

 

 

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