How to file taxes for an llc in texas

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. There are special rules for foreign LLCs. Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form and affirmatively elects to be treated as a corporation.

For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity. An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form , Entity Classification Election PDF , to elect how it will be classified for federal tax purposes.

The Texas Business Organizations Code requires that for-profit corporations and professional corporations have at least one director, one president, and one secretary. A single natural person can be the president, secretary, sole director, and sole shareholder. In the case of a nonprofit corporation, the Texas Business Organizations Code requires a nonprofit corporation to have at least three directors, one president, and one secretary; however, in a nonprofit corporation, the same person cannot be both the president and secretary.

In both for-profit corporations and nonprofit corporations, officers and directors must be natural persons. Shares of stock sold by the corporation represent proportionate ownership interests held by shareholders in the corporation.

A certificate of formation must authorize at least one share. The corporation cannot sell more shares than it is authorized to issue. An LLC is always going to have at least one member, but the affairs of the LLC can be managed or governed in one of two ways. First, the LLC may be governed by its members as a whole. In this situation, every member has management authority. The managers of an LLC may or may not also be members. Your certificate of formation has to specify how the LLC will be managed.

The secretary of state cannot assist you in making this determination. If you are unsure of the best management structure for your LLC, you may want to consult with your private attorney.

Depending on the type of professional entity, an owner or governing person may be a professional individual, or in some cases a professional organization. Only a professional individual may be an officer. The table below shows the BOC restrictions for each type of Texas professional entity.

There may be additional restrictions in the governing documents for a particular entity. Generally, every business must protect its own intellectual property and good will. Filing a certificate of formation only prevents the secretary of state from filing a subsequent certificate of formation for an entity with a name that the secretary of state determines is not distinguishable in the records.

Individuals and unincorporated entities that do business using an assumed name often referred to as a "dba" must file an assumed name certificate with the county clerk in each county in which business premises are maintained. If a corporation, LLC, or LP does business under a name other than the legal name in its certificate of formation, it must file assumed name certificates with the secretary of state and with the clerk of the appropriate county.

The secretary of state recommends that you consult a private attorney about trademarks, service marks, and other intellectual property matters. The secretary of state cannot file an entity name that is the same, except for the organizational identifier, as an existing entity name on file unless the existing entity provides written notarized consent.

Under the provisions of sections The Banking Commissioner has the authority to issue a letter of no objection for use of these words or terms. Receipt of the letter from the Commissioner will enable the requestor to submit certain filings to the secretary of state. The following names, or phonetically similar derivatives of such names, taken from the list of prohibited names, have been determined to require a letter of no objection from the Banking Commissioner.

Persons seeking the issuance of a letter of no objection should submit a letter containing the following information to the Banking Department's Corporate Activities Division at the address appearing below:. The Banking Commissioner will review the proposed name and use of terms, along with other material submitted as a whole in order to make a decision.

Generally, the Commissioner will grant a request if, in context, the term is not misleading and is used 1 to indicate a permissible and authorized affiliation with a bank or trust company; 2 by an actual trust or entity controlled by the trust for the purpose of conducting its own business other than the business of providing banking or fiduciary services to the public ; 3 by a vendor of services or products to financial institutions in a manner and context that fairly describes its business; or 4 as a term of art in a manner and context that clearly invokes an established secondary meaning.

If your request falls outside these parameters, the chance of approval is slim. Austin, TX The Texas Education Code prohibits the use of the terms "college," "university," "school of medicine," "medical school," "health science center," "school of law," "law school," and "law center.

For authorization to use any of these terms in an entity name, a request letter should be submitted to the THECB stating the following:. If you wish to have your response faxed to you by THECB, in the body of the letter request a fax and provide your fax number.

The request letter must contain the address and telephone number of the entity or person requesting the authorization business letterhead is acceptable. The letter may be sent by the entity requesting the authorization or an agent representing the entity attorney or other entity authorized to represent the entity to facilitate the approval. Box Austin, TX fax.

A copy of the approval letter from THECB should be submitted with your certificate of formation or other filing instrument to the secretary of state. For-profit and professional corporations, professional associations, LLCs, and certain limited partnerships whether Texas or foreign that are subject to state franchise tax laws file annually with the Comptroller of Public Accounts.

Texas law does not require a business to have a seal; therefore the secretary of state does not have information or regulations on how to design a seal or where to obtain one. Seals, stock certificates, and minute books can be purchased from book stores, office supply stores, or corporate service companies.

The secretary of state does not issue employer identification numbers. The Secretary of State cannot answer this question. For information, please visit the Texas Comptroller of Public Accounts franchise tax website. A business entity keeps its internal governing documents at its principal office. No statute permits the filing of these documents with the secretary of state; therefore, the secretary of state cannot accept them for filing.

In order to receive a file-stamped copy of a filing instrument, you must submit a duplicate copy of the filing instrument. The secretary of state does not reject filing instruments that are not accompanied by a duplicate copy if the filing instrument otherwise conforms to the statutory requirements.

In addition, the secretary of state is not required to attach a file-stamped copy of an instrument when no duplicate copy has been provided. You do not have to file a document with the secretary of state when selling or issuing shares or ownership interests in your entity. The offer for sale or sale of shares or ownership interests is regulated under state and federal securities laws. Minimal Formalities : Texas law does not require your LLC to hold annual meetings or record detailed minutes.

However, this will change when you distinguish between S and C corporations in the state of TX. As C corporations allow you to have more than members unlike in an S corporation but this comes with certain tax and regulations requirements. This means that no other company or potential company may use your name for their business. LLCs also come with certain tax benefits for your company. You will need to comply with the tax requirements at all three levels: Federal, State, Local.

Instead, the profits and losses flow-through to the owners members who are then responsible for filing them on their personal income tax return.