Texas LLC Formation Attorneys

Complete LLC Formation and Compliance Services

An LLC, or limited liability company, is a business structure that provides its owners with limited liability. This means the owners' personal assets are likely not at risk if the LLC is sued. LLCs are relatively simple to form and maintain, making them a popular choice for small businesses.

As a business law firm, we regularly assist business owners and entrepreneurs with the formation of entities, from LLCs to limited partnerships and corporations.

Are you ready to launch your business in Texas? Our corporate formation attorneys can help you start your LLC on the right legal footing. Call today or send an online message for an estimate.

On This Page

• Our Texas LLC Formation Services
• Why Choose Hendershot Cowart Over a Do-It-Yourself Service?
• Benefits of Texas LLCs
• Single-Member vs. Multi-Member LLCs in Texas
• Recommended Governance Documents for a Texas LLC
• What Is a Registered Agent?
• Forming a Series Limited Liability Company (Series LLC) in Texas
• Is A Series LLC Right For Me?
• Frequently Asked Questions

Our Texas LLC Formation Services

Our LLC formation services include:

• Checking the availability of the name you choose for your entity. (Note: the name under which you transact business must be distinguishable in the records of the Secretary of State from any existing entity registered to do business in Texas.)
• Preparing and filing the Certificate of Formation
• Paying the filing fee with the Texas Secretary of State
• Obtaining a Federal EIN number (or tax ID number)
• Preparing your initial operating agreement
• Serving as the registered agent (if requested)

Our Houston-based law firm can also help you set up an anonymous LLC in Texas or domesticate your out-of-state LLC to Texas.

Why Choose Hendershot Cowart Over a Do-It-Yourself Service?

For entrepreneurs starting a business in Texas, choosing between a business law firm like Hendershot Cowart P.C. and an online service like LegalZoom involves weighing costs against value. 

Consider this comparison: 

True Legal Experience and Texas Counsel

Hendershot Cowart P.C. offers you access to actual Texas business attorneys with over 35 years of experience forming entities in Texas. Our attorneys understand the nuances of Texas business law and can provide legal advice tailored to your specific situation.

In contrast, online LLC services, such as LegalZoom, do not include access to an attorney, and the information you provide to them is not protected by attorney-client privilege. 

Customized Documents vs. Templates

Our law firm provides a custom-drafted operating agreement specifically tailored to your business needs, goals, and Texas law. This crucial document governs how your business operates internally, including:

• Management structure
• Profit distributions
• Member rights and responsibilities
• Buy-sell provisions
• Dispute resolution mechanisms

Do-it-yourself services offer standardized template documents that may not address your specific business needs. Their operating agreements are generic and not customized to your particular circumstances or industry.

Attorney-Client Relationship

Working with Hendershot Cowart establishes an ongoing attorney-client relationship with legal professionals who understand your business. This relationship provides:

• Attorney-client privilege protection for sensitive discussions
• A trusted advisor who knows your history
• Continuity of service for future legal needs
• Access to a team ready to address any legal issues that arise

Risk Mitigation and Liability Protection

Business formation is about more than just filing paperwork. Hendershot Cowart attorneys can:

• Identify potential liability issues specific to your industry
• Structure your LLC to maximize tax advantages
• Advise on compliance with industry-specific regulations
• Create governance documents that protect your interests in disputes

Online do-it-yourself services, on the other hand, focus on completing standardized forms rather than addressing potential risks unique to your business. 

For entrepreneurs serious about building a business with proper legal protection, the investment in Hendershot Cowart's services can prevent costly mistakes and provide a foundation for ongoing legal support as your business grows.

Call 713-322-9075 or contact us online for a flat-fee quote for our customized LLC formation services for Texas businesses. 

Benefits of Texas LLCs

The main benefits of organizing your Texas business as an LLC, include:

1. Limited Liability Protection. When you form an LLC in Texas, the LLC essentially becomes its own legal entity, protecting your personal assets from business liabilities. If your business is sued or accumulates debt, creditors generally cannot pursue your personal assets like your home, cars, and bank accounts. 
2. Pass-Through Taxation. LLCs provide flexible taxation options compared to other business structures. They offer "pass-through taxation" by default, meaning the business itself doesn't pay federal income taxes. 
3. Management Flexibility. Unlike corporations that require formal management structures, LLCs can be either member-managed (all members are involved in managing the business) or manager-managed (a designated manager or managers handle day-to-day operations). There is no requirement for either an initial meeting of the owners or managers or an annual meeting, as there is with a corporation. 
4. Business Continuity. Unlike sole proprietorships that end if the owner dies, an LLC can continue to exist regardless of ownership changes if structured properly in your operating agreement.

Single-Member vs. Multi-Member LLCs in Texas

In Texas, an LLC can be established as a single-member LLC or a multi-member LLC. 

A single-member LLC has one owner, while a multi-member LLC has two or more members who can choose between member-managed or manager-managed. Both provide liability protection to all members, shielding personal assets from business debts. 

One key distinction is taxation. While both single-member and multi-member LLCs are taxed as pass-through entities, single-member LLCs are taxed as a "disregarded entity". This means that business income and deductions are reported on the owner’s personal return, eliminating the need for additional tax filings. Multi-member LLCs, on the other hand, are taxed as partnerships and require partnership tax filings (Form 1065 and K-1s). 

Ready to form your LLC? Contact our business formation attorneys at (713) 804-7856 to discuss which structure is right for your specific circumstances.

Recommended Governance Documents for a Texas LLC

A Texas LLC – whether it’s a single-member or multi-member – should have certain governance documents in place to establish the internal structure, management, and operating procedures of the business.

While the specific requirements may vary depending on the complexity of the LLC and the preferences of its members, governance documents for a Texas LLC should at minimum include:

• Certificate of Formation: This is the document filed with the Texas Secretary of State to create the LLC. It includes basic information about the company, such as its name, registered agent's name and address, purpose, management type, and duration.
• Operating Agreement: Although not legally required in Texas, an LLC operating agreement is an internal document that outlines the rights, responsibilities, and operating procedures of the members (owners) and managers (if applicable). The operating agreement covers topics such as profit and loss distribution, member contributions, voting rights, management structure, and procedures for adding or removing members. Without one in place, the LLC’s operation and governance are dictated by the broad provisions of state law.
• The minutes of the first meeting of members (organizational meeting): These are often used to authorize the opening of financial accounts and signatory authority for same.
• Signed and issued membership certificates: These documents evidence ownership interests or membership units in the LLC. They are similar in concept to stock certificates issued by corporations. Membership certificates serve as formal evidence of a person's or entity's ownership stake in the LLC and are typically issued to each member.
• Signed consent by the registered agent: The registered agent typically signs a document stating that they agree to serve as the registered agent for the particular business entity and that they understand their duties and responsibilities in that capacity.
• If the LLC is a series company and there are to be registered series, a certificate of registered series.

Having well-defined governance documents can help prevent disputes and litigation and ensure the smooth operation of your business. Our Texas business attorneys can ensure that the documents comply with Texas laws and regulations and tailor them to the specific needs and goals of your business.

What Is a Registered Agent?

A registered agent is a designated individual or entity that is responsible for receiving legal and official documents on behalf of a business or organization. An LLC is required to maintain a registered agent and a registered office in Texas.

The main purpose of a registered agent is to ensure that there is a reliable and official point of contact for your business in the state of Texas, ensuring that your business can be properly served with legal documents and that important communications from the government are received promptly.

Per Texas statute, failure to maintain a registered agent and registered office may result in the involuntary termination of the LLC. Critically, it may also result in a default judgment against you. Not having a reliable, reachable registered agent is not a valid defense against adverse legal action.

Hendershot Cowart P.C. serves as the registered agent for many of the entities we help form. This ongoing service is included in our initial LLC formation fee, unless otherwise noted.

Forming a Series Limited Liability Company (Series LLC) in Texas

Though traditional corporations and LLCs are the most common types of corporate structures, some business entities may need to choose between forming multiple corporations, or a single Series Limited Liability Company (Series LLC).

Under Texas law, a Series LLC is essentially a traditional LLC that has adopted language in governing documents allowing the use of “series” (or “sub-series” or “cells”) within the framework of a single LLC. This can offer advantages over traditional LLCs, where all assets are available to satisfy the obligations and liabilities of the LLC, by insulating the assets of one entity from the liabilities and obligations of others.

Key features of a Series LLC in Texas include:

• Each sub-series within a Series LLC retains the rights of a traditional LLC, including the right to own assets, enter into contracts, provide liens or own titles, incorporate different management or ownership structures, have different business purposes, and sue or be sued.
• Assets associated with a Series LLC may be held in the name of the sub-series or in the name of the “master” LLC. Its members or managers are not liable for debts or obligations of the parent LLC or sub-series but do hold express rights and duties with each series as stated in the company agreement. In short, the parent LLC is protected from the liability of the series, and each series is protected from the liabilities of the parent and other LLCs.
• Though a Series LLC creates multiple cells which function as “stand-alone” entities with a single filing, they are not technically considered distinct domestic entities under Texas state law. 

While asset protection, tax benefits, low start-up costs, and less administrative upkeep make series LLCs attractive, there is a caveat to its firewall protection – it exists only with compliant formation and management. This includes incorporating necessary language into the certificate of formation and company agreements, properly accounting for the assets of each sub-series, and implementing policies for thorough record-keeping.

Is A Series LLC Right For Me?

A Series LLC structure may be right for your business if:

• You own multiple real estate properties: Each property can be held in a separate series, protecting each from liabilities associated with the others
• You operate distinct business divisions: Different product lines or service offerings can be separated into individual series
• You plan for future expansion: The Series LLC structure allows for growth without filing fees for each new entity
• You want asset protection with administrative efficiency: Series LLCs can reduce annual filing requirements and paperwork compared to multiple standalone LLCs
• You have significant and valuable assets: Business owners with multiple high-value assets that need protection from cross-liability may benefit most from this structure

Series LLCs may not be the most appropriate option for entities with both for-profit and not-for-profit activities, branches with significantly higher levels of liability than others, businesses that operate in multiple states, or a need for tax and financial confidentiality between members.

Frequently Asked Questions About LLC Formation in Texas

How Much Does It Cost to Register an LLC in Texas?

The filing fee for a certificate of formation for an LLC in Texas is $300 (as of April 14, 2025). A certificate of formation creates your business entity with the state of Texas but does not include governance documents, such as an operating agreement. Without an operating agreement, your business will be governed by the Texas Business Organizations Code, which may not accurately reflect your intent or the intent of your business partners.

Call our offices at (713) 561-5288 or contact us online for a quote on the cost of setting up your LLC and the services included.

Note: New veteran-owned businesses are not subject to certain filing fees, including the fee for filing a Certificate of Formation with the Texas Secretary of State.

How Long Does It Take to Set Up an LLC in Texas?

Due to the volume of documents received by the Texas Secretary of State, even expedited requests take 12 to 14 business days. As a result, you should expect the formation of an entity to take around three weeks.

An experienced business formation attorney can ensure that the certificate is filed correctly the first time, preventing further delays.

Do I Need an Attorney to Set Up an LLC?

Many online services offer to form your LLC for a low package price or monthly subscription. There is nothing wrong with wanting to be judicious in the way you spend money.

However, these off-the-shelf solutions will not help you consider the legal risks and considerations you face as a business owner, partner or executive.

An LLC formation attorney can highlight exposures and recommend agreements and compliance plans that protect your business while keeping legal costs manageable. Saving money with an off-the-shelf LLC formation will be of little consolation if your business faces litigation down the road due to faulty or missing foundational agreements or unaddressed risks.

I Already Formed My LLC. Do I Still Need an Attorney?

Just because you’ve taken that first step does not exclude you from engaging legal counsel to put governance documents in place.

An experienced LLC formation attorney can help you put agreements in place that anticipate potential risks and issues while also working to ensure that your business's structure and legal arrangements are well suited to your specific needs.

My Business Partner and I Have Been Operating for a Number of Years. Is It Too Late to Put an Operating Agreement in Place?

An operating agreement can be executed at any time during an LLC’s existence. If you and your partner(s) can agree to the terms, you can draft and execute an operating agreement to govern the business at any time.

We Circulated an Operating Agreement, But I Never Signed It. Is That Agreement Enforceable?

If an agreement is not signed by all members of the LLC, it is just a draft and not a valid agreement. Pull it out of the drawer, dust it off, and circulate that agreement for signature before a dispute over the governance of your business arises.

What Is the Difference Between an LLC and a PLLC?

A PLLC is a specific type of LLC designed for licensed professionals in certain fields, such as doctors, lawyers, accountants, engineers, architects, and other regulated professions. In Texas, professionals must set up their business entities as professional entities.

I Occasionally Get Business From Clients in Other States Besides Texas. Do I Need to Register as an LLC or Entity in Those States?

If you have a pattern of ongoing business dealings in another state, you might need to register as a foreign entity in that state. If you have only a few sporadic transactions in another state, that may not be necessary.