Best LLC Formation Services in Texas | Comparative Review 2024

Best Texas LLC Formation Services

Best LLC formation services in Texas: If you would like to start an LLC in Texas, also known as The Lone Star State, there are a few steps to follow. In general, you can set up your LLC in two ways: either you can do it yourself or take help from professionals. Texas is a business-friendly state and has immense opportunities for start-ups. However, setting up an LLC in Texas can be stressful for beginners. Hence, hiring a professional LLC formation service is better than doing it on your own.

In Texas, you will find several LLC formation services that offer great deals. Some offer free service, some offer a business website and logo with the LLC package, and some offer something else. This is incredibly attractive; however, based on your company’s requirements, you must choose the best option for you!

To help you navigate setting up an LLC, Webinarcare Editorial Team has compiled a list of the best Texas LLC formation services. These companies can help you handle the paperwork and legal requirements, so you can focus on growing your business.

Starting an LLC is attractive for many entrepreneurs looking to establish a new business. Limited Liability Companies (LLCs) offer numerous advantages for entrepreneurs and small business owners, including liability protection, flexibility in management, and favorable tax treatment. As a result, many entrepreneurs are choosing to form their LLCs in Texas.

The Best Texas LLC Formation Services

In this section, we will describe the operating procedures of the best LLC Formation Services available in Texas along with several other relevant information. We will also discuss these companies’ costs, pros, and cons so you to understand better and choose the right LLC formation services you want in Texas.

LLC Service

Rating & Pricing

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#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • Legal Support

  • Highly Reputed Company

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

Webinarcare Editorial Team has come up with some extraordinary LLC formation services. This is a general list based on our experience. You can compare their services and pricing before you hire them to form your business.

Following are the 5 best LLC formation services in Texas:

Now, let’s dive into the list of best LLC formation services in Texas.

1. LegalZoom

legalzoom

LegalZoom is a well-established name in the business formation industry, offering a range of legal services beyond Texas LLC formation. Their experience and reputation make them a reliable choice for entrepreneurs.

Plans and Pricing

LegalZoom’s pricing for LLC formation starts at $0 plus state fees for the Basic Package, which includes a name check, filing formation documents, and access to an online document library. The Pro Package ($249 plus state fees) adds a personalized operating agreement, while the Premium Package ($279 plus state fees) includes expedited processing and priority shipping.

Add-on Services by LegalZoom

  • Registered Agent
  • Trademark registration
  • Copyright registration
  • Patent services
  • Estate planning
  • Legal advice
  • Expedited Filing

Registered Agent Service is not included in any packages. It is available as an add-on at $299 per year! LegalZoom is the best option if you have a requirement of only registered agent service, not the entire formation package.

Pros 👍Cons 👎
A well-known and reputable companyMore expensive than some competitors
A wide range of legal services beyond LLC formationSome customer reviews mention slow turnaround times.
Lifetime customer support

2. BetterLegal

betterlegal

BetterLegal provides an efficient and user-friendly platform for entrepreneurs to establish legal entities such as LLCs (Limited Liability Companies) and corporations. The platform streamlines forming a business entity, making it easier and more accessible for individuals without legal expertise.

Plans and Pricing

BetterLegal offers a straightforward pricing structure for its services. The company offers $299 + state fees price for a formation package. You must pay $50 to get the service if you want to obtain the EIN. Besides, BetterLegal is a legal firm that provides legal support and consultation.

Other Services and Add-ons By BetterLegal

  • Registered Agent service – $10/month or $90/year
  • State Annual compliance services – $10/month or $90/year
  • Permit & License Search Service – $125
  • Amendment & document research – $0

Amendment and document research come with BetterLegal’s core formation package. It is free. On the other hand, this service is available as a standalone service. You must purchase the core formation package if you need amendment and document research.

Pros 👍Cons 👎
User-Friendly PlatformLimited Legal Advice
Time and Cost SavingsState-Specific Services
Transparent PricingLack of Customization

3. ZenBusiness

zenbusiness

ZenBusiness is an affordable and user-friendly option for forming an LLC. With its straightforward pricing and comprehensive services, ZenBusiness has quickly become one of the most popular choices for entrepreneurs looking to form an LLC.

Plans and Pricing

ZenBusiness offers three different pricing plans, starting at $0 plus state fees for their basic package, which includes a registered agent service, an operating agreement, and a worry-free guarantee. Their Pro package ($199 plus state fees) adds an Employer Identification Number (EIN), banking resolution, and expedited filing. The Premium package ($299 plus state fees) includes all Pro features, a business website, a domain name, and an email address.

Add-on Services By ZenBusiness

  • Tax and Accounting
  • Compliance Services
  • Annual Reports
  • Business License Reports
  • Business Website
  • Banking & Finances

ZenBusiness provides a standalone registered agent service. If you do not need the entire formation package, you can only purchase their registered agent service at $99 per year.

Pros 👍Cons 👎
Affordable pricing and clear, transparent plansThe basic package does not include an EIN
Excellent customer service and supportNo Texas nonprofit formation
Fast turnaround times for LLC formation
Positive customer reviews

4. Incfile

incfile

Incfile is another popular choice for entrepreneurs forming an LLC. They offer various services, from basic formation packages to more comprehensive plans with additional features. Incfile is one of those services that started LLC formation services at $0.

Plans and Pricing

Incfile’s pricing starts at $0 plus state fees for their basic Silver package, which includes a registered agent service, company alerts, and online access to incorporation documents. The Gold package ($149 plus state fees) includes an EIN, operating agreement, and banking resolution. In contrast, the Platinum package ($299 plus state fees) adds a business website and domain, expedited filing, and customizable legal forms.

Add-on and Other Services By Incfile

  • Registered Agent: $119 after a year (one year free)
  • Employer Identification Number: $70
  • Operating agreement: $40
  • Certificate of Good Standing: $49 + State Filing Fees
  • File corporation annual report: $88 + State Filing Fees
  • Doing Business As (DBA): $99 + State Filing Fees
  • Trademark Registration: $199 + Federal Filing Fees
  • Business License Search: $99
  • Dissolution: $149 + State Filing Fees
  • S-Corp Tax Election: $50 for current LLC & $25 for current C-Corps

Registered agent service at Incfile is available at $119 per year. However, you can enjoy it for free for one year if you take their formation package.

Pros 👍Cons 👎
Competitive pricing, with a free basic package availableSome additional features, such as a business website, are only available in the most expensive package.
A comprehensive range of services and featuresAdditional cost to obtain EIN
It comes with a registered agent service, even in the basic package
Good customer support

5. Northwest Registered Agent

northwest registered agent

Northwest Registered Agent is known for its personalized customer service and commitment to privacy. They offer a simple and straightforward approach to Texas LLC formation, focusing on the essentials.

Plan and Pricing

Northwest Registered Agent charges a flat fee of $225 plus state fees for their Texas LLC formation service, which includes a registered agent service, filing formation document, and an operating agreement draft.

Add-ons and Other Services By Northwest Registered Agent

  • Registered Agent at $125 yearly
  • Annual report filing at $100 + state filing fee
  • Obtaining EIN at $50
  • Northwest offers National Agent Service. If you operate your LLC Registered Agent in 5 or more states, you can pay $100 + state fees (if applicable) to get a single agent for all states.

With Northwest Registered Agent, you can enjoy the standalone Registered Agent service. If you don’t want the full formation package, you can purchase the only registered agent service for $125 per year.

Pros 👍Cons 👎
Flat fee pricing with no upsells or hidden costs.No tiered pricing or additional features are available.
Excellent customer service and personalized supportMore expensive than some competitors
Focus on privacy and security.

Webinarcare Editorial Team selects these LLC Formation Services through thorough research and market study. You must cross-check all the factors before choosing the right one for your Texas business.

What is an LLC?

An LLC, or Limited Liability Company, is a legal business structure that combines the benefits of both corporations and partnerships. It offers limited liability protection to its owners, known as members, and provides flexibility in management and taxation. LLCs in Texas are popular among Texas business owners and entrepreneurs because they are relatively easy to set up and maintain compared to other business structures.

Key features of an LLC include:

  • Limited Liability Protection: Members of Texas LLC are not personally liable for the company’s debts or liabilities. This means that their personal assets, such as homes and savings, are protected from creditors and lawsuits related to the business.
  • Flexible Management: Unlike Texas Corporations, which require a Three board of directors and officers, LLCs can be managed by the members themselves or by appointed managers. This allows for more flexibility in how the company is run and makes it easier for small business owners to maintain control over their operations.
  • Pass-through Taxation: By default, Texas LLCs are not taxed as separate entities. Instead, their profits and losses pass through to the owners, who report them on their personal income tax returns. This avoids the double taxation that affects corporations, which pay taxes on their profits, and then shareholders pay taxes on dividends. However, LLCs can also be taxed as corporations if it’s more advantageous for their specific situation.
  • Easy Formation and Compliance: Forming an LLC typically requires filing Texas Certificate of Formation with the Texas and paying a filing fee of $300. While some ongoing compliance requirements may apply, such as submitting Texas Annual Reports or maintaining a Registered Agent, LLCs generally have fewer regulations and restrictions than corporations.

An LLC offers a flexible and relatively simple way for entrepreneurs and small business owners to establish a legal business structure while providing limited liability protection and potential tax advantages.

How to Choose the Best LLC Formation Services

Choosing the best LLC formation service Texas depends on several factors, such as pricing, features, customer support, and overall reputation. To make an informed decision, consider the following steps:

  • Determine your needs: Identify your specific requirements before comparing Texas LLC formation services. Do you need help filing the necessary paperwork or require additional services like Obtaining an EIN, drafting an operating agreement, or having a registered agent service?
  • Research and compare options: Compile a list of potential LLC formation services available in Texas. Research each company’s reputation, customer reviews, and track record. Look for services with a history of satisfied clients, quick turnaround times, and a strong reputation for providing accurate and reliable support.
  • Compare pricing and packages: Analyze the pricing and packages offered by each service. Some companies offer tiered pricing, while others charge a flat fee for their services. Consider the features included in each package and determine which one offers the best value for your needs. Remember that the cheapest option may only sometimes be the best choice, as it could lack essential features or support.
  • Evaluate customer support: Customer support is crucial when dealing with legal and regulatory matters. Make sure the Texas LLC formation service you choose offers responsive and knowledgeable support through various phone, email, or live chat channels. It would be best if you also verified their availability during your preferred hours of operation.
  • Consider additional services: Some LLC formation services offer a range of additional features, such as ongoing compliance assistance, legal advice, or business document templates. If you anticipate needing these services, choosing a provider that can fulfill all your business requirements in one place may be beneficial.
  • Read customer reviews and testimonials: Lastly, read customer reviews and testimonials to gain insights into each company’s performance and client satisfaction. Look for consistent patterns in feedback, such as responsiveness, accuracy, and professionalism. Remember that occasional negative reviews are inevitable, but a company with overwhelmingly positive feedback will likely provide a reliable and satisfactory experience.

By carefully considering your needs, comparing options, and evaluating customer support and additional services, you can choose the best LLC formation service in Texas that meets your requirements and helps you start your business on a strong foundation.

Importance of Professional LLC Formation Services

Professional LLC formation companies play a crucial role in helping entrepreneurs and small business owners establish their businesses by simplifying the process of forming a Limited Liability Company (LLC). These services offer a range of benefits, including saving time and effort, ensuring compliance with legal requirements, and providing ongoing support. Here are some key reasons why utilizing professional LLC formation companies is important:

Expertise and experience

Professional LLC formation companies possess the knowledge and experience to navigate the complex process of forming an LLC. They understand the legal requirements, regulations, and documentation needed to establish a compliant LLC in your state. This expertise can help you avoid costly errors, omissions, or delays in the formation process.

The LLC formation services should know about filing an LLC, Certificate of Formation, or Certificate of Formation – For Profit Corporation in Texas Secretary of State.

Time and Effort Savings

Forming an LLC can be time-consuming, especially for first-time entrepreneurs needing to become more familiar with the process. By enlisting the help of a professional LLC formation company, you can save time and effort, allowing you to focus on other aspects of starting and growing your business.

Compliance Assurance

One of the primary benefits of using Texas professional LLC formation service is ensuring that your LLC complies with state laws and regulations. This includes accurately preparing and filing the necessary paperwork with a Registered Agent, obtaining required Texas Business Licenses and permits, and maintaining ongoing compliance through Texas Annual Reports and other filings.

Registered Agent Services

Texas require LLCs to have a Registered Agent, who is responsible for receiving legal and government correspondence on behalf of the company. Many professional LLC formation companies offer Texas Registered Agent Services, which can be a convenient and cost-effective solution for maintaining this requirement.

Customized Operating Agreements

A well-drafted Texas Operating Agreement defines your LLC’s structure, management, and ownership. Professional LLC formation services often provide customized operating agreements tailored to your business needs, ensuring your Texas LLC is set up correctly.

Ongoing Support and Resources

Many professional LLC formation companies offer ongoing support and resources for business owners, including assistance with compliance, legal advice, and access to business document templates. This can be invaluable in helping you manage and grow your business.

Peace of Mind

Texas LLC formation services provide peace of mind, knowing your business is set up correctly and compliantly. This allows you to focus on your core business objectives with the confidence that experts are handling your LLC’s legal and regulatory requirements.

Can an LLC Formation Services Help Me File My Taxes?

Each LLC formation specialist provides tax advice to help you avoid state tax penalties easily. You can even file your taxes on time, so your business won’t be charged a fee. The LLC formation company or your hired Registered Agent can file for your taxes in Texas Comptroller of Public Accounts.

Do I Need Texas LLC Formation Services?

You can do everything an LLC service can without paying the service fees. Business owners who don’t want to file independently can benefit from LLC services, which can also give them access to other legal services from experienced lawyers. Your Texas LLC can also be created for you by a local business lawyer. Texas Business Attorney can be a good option if you prefer a personal relationship with someone who can assist you with various legal questions and issues, even though this may cost more than an online service.

FAQs

Is forming an LLC in Texas easy?
Yes, it is relatively easy to form an LLC in Texas.
What are the requirements for forming an LLC in Texas?
The requirements include registering your LLC with the Texas Secretary of State and filing appropriate forms.
How much does it cost to form an LLC in Texas?
The cost varies, but on average it is around $300 to $400.
Can I form an LLC in Texas if I’m not a resident of the state?
Yes, you can form an LLC in Texas even if you’re not a resident of the state.
What is the turnaround time for forming an LLC in Texas?
The turnaround time can take up to a few days depending on the workload of the Texas Secretary of State’s office.
Do I need a registered agent when forming an LLC in Texas?
Yes, all LLCs formed in Texas are required to have a registered agent located in the state.
What are the benefits of forming an LLC in Texas?
Texas offers several benefits when forming an LLC, including no state income tax, strong asset protection laws, and a simplified formation process.
What should I consider when choosing an LLC formation service in Texas?
You should consider their experience, pricing, customer service, and reviews from previous customers.
Which LLC formation service in Texas offers the best pricing?
It is difficult to determine which LLC formation service in Texas offers the best pricing without comparing multiple companies.
Do I need to file a separate tax return for my Texas LLC?
Yes, you will need to file a separate tax return for your Texas LLC.
Can I form a single-member LLC in Texas?
Yes, you can form a single-member LLC in Texas.
What types of businesses are ideal for forming an LLC in Texas?
The state of Texas offers several business advantages, making it a great choice for LLCs in various industries including technology, oil and gas, and healthcare.
How long does it take to form an LLC in Texas?
The average processing time is a few days to several weeks, depending on the workload of the Texas Secretary of State’s office.
Can I also operate my LLC in other states besides Texas?
Yes, as long as you register your LLC as a foreign entity in any other states, you plan on operating in.
Is it necessary to form an LLC in Texas for an online business?
Forming an LLC in Texas offers a variety of benefits for online businesses such as credibility and legal protection.
How long is an LLC valid in Texas before renewal?
LLCs in Texas are valid for an unlimited period of time although you will have to pay all the requisite fees.
What is the required dissolution process for an LLC in Texas?
You must file Form 651 with the Texas Secretary of State to dissolve your LLC in Texas.
What is the cost of formulating an LLC operating agreement in Texas?
Prices vary depending on the lawyer or legal service you use to create the LLC operating agreement.
Do I need to make any annual regulatory filings with the Texas Secretary of State to keep my LLC in good standing?
Yes, you will need to submit your annual report to the Texas Secretary of State in order to remain in good standing.
Can I change the name of my LLC in Texas?
Yes, you can change the name of your LLC by filing an amendment form and any associated fees applicable.
How long will it take to get my Certificate of Formation?
It varies but it typically takes a few days to several weeks, depending on the workload of the Texas Secretary of State’s office.
How long do I have to file my Certificate of Formation?
There’s no official deadline, but it’s best to file it as early as possible in order to avoid any potential last-minute issues.
What happens to my LLC formation if mistakes are discovered during the review process?
Your LLC formation application will be rejected and returned due to misspellings, incomplete forms or missing information.
Can I form an LLC on my own without assistance from an attorney or LLC service provider?
Yes, but it’s not ideal if you are not knowledgeable regarding Texas LLC formation requirements/legal structures.
Can I start my business before receiving my LLC Certificate of Formation from the Texas Secretary of State’s office?
Yes, provided you have already submitted your COR/COF and COA and anything else required by the law.
Can another business also have the same or a similar name as my Texas LLC?
To avoid conflicts, Texas LLCs are prohibited from using names that are same, or can be misleadingly stated another registered Texas entity’s name.
Can I form multiple LLCs in Texas?
Yes, you can form any number of LLCs as well as other forms of businesses as long as all requirements are met and you comply with their governance and permit requirements.
Can a Texas LLC have foreign members/investors?
Yes, foreign members/investors are allowed but be aware of certain Foreign Corrupt Practices regulations.
Can I convert my single-member LLC in Texas into a multi-member LLC?
Yes, you can make that transition but you’ll have to prepare legal documents reflecting the company structure changes.
What is an LLC and how does it work in Texas?
An LLC is a limited liability company, which provides personal liability protection for business owners in Texas. It works by separating the business from its owners and is taxed like a partnership or sole proprietorship.
What are the advantages of forming an LLC in Texas?
Some advantages of forming an LLC in Texas include personal liability protection, flexible management, and potential tax benefits.
Do I need to hire an attorney to form an LLC in Texas?
No, you don’t have to hire an attorney to form an LLC in Texas, but it may be helpful to consult with one for legal advice and guidance.
Can I form an LLC online in Texas?
Yes, you can form an LLC online in Texas through the Texas Secretary of State’s website or using a formation service.
What is a registered agent in Texas?
A registered agent in Texas is a person or entity that accepts legal and tax documents on behalf of your LLC, which is required by state law.
Can I be my own registered agent in Texas?
Yes, you can be your own registered agent in Texas, but it must be a physical resident address.
Do I need a business license to form an LLC in Texas?
The requirements for a business license in Texas vary depending on the location and type of business. A state business license is not required to form an LLC.
What are the ongoing requirements for maintaining an LLC in Texas?
Some ongoing requirements for maintaining an LLC in Texas include annual reports, taxes, and updates to the state in case of any changes to your business.
What is an operating agreement for an LLC in Texas?
An operating agreement for an LLC in Texas is a legal document that outlines the ownership and management structure of your LLC, and details the rights and responsibilities of its members.
Is an operating agreement required for an LLC in Texas?
An operating agreement is not required in Texas, but it is highly recommended to establish clear organization and prevent any confusion.
Can I change the name of my Texas LLC after formation?
Yes, you can change the name of your Texas LLC after formation, but you must file a certificate of amendment with the state.
How do I dissolve my Texas LLC?
To dissolve your Texas LLC, you must file articles of termination with the Texas Secretary of State and follow any other necessary steps.
Do I need to annually renew my LLC in Texas?
Yes, you must submit an annual report for your Texas LLC and paying a $0 annual fee to the Texas Secretary of State.
What is a statutory agent in Texas?
The same as a registered agent, in Texas the term “statutory agent” may be used instead of registered agent.
What are the tax implications of forming and LLC in Texas?
Taxes are not as expensive compared to incorporating as a company.
How long does it take to get an EIN for my Texas LLC?
Typically the IRS provides an EIN or Tax ID balance immediately once submitted electronically.
How do I file for a DBA in Texas?
Visit the county clerk’s office where the company is located in Texas to file.
Are there any restrictions on the names I can use for my Texas LLC?
Your LLC name can’t conflict with the names of any other businesses in Texas, must include the phrase “Limited Liability Company”, “LLC,” or the abbreviation “L.L.C.”
Who can form an LLC in Texas?
Anyone above the age of 18 can form an LLC in Texas as long as he or she is not fraudulent with criminals or cannot follow legal rules.
What is a State Employer Identification Number and do I need one for my Texas LLC?
Texas specific Employees must register for a Texas EIN.
Which company is the best LLC formation service for Texas?
There are several good LLC formation services for Texas such as Legalzoom, IncFile, and Zen Business. Each has positive ratings and any would be a good choice for businesses in Texas.
Can I create multiple Texas LLCs using the same formation service company?
Yes, you can form multiple Texas LLC companies with the same formation service company.
What is a Certificate of Organization for a Texas LLC?
A certificate of formation must be filed in Texas in order to form an LLC.
Is a foreign LLC treated differently than a local Texas LLC?
Yes, a foreign LLC is not accountable to the law over their entire transaction but under jurisdiction both of the state law where the LLC was created and the Texas Secretary of State.
What is a series LLC and can I form one in Texas?
A series LLC separates its contents with assets and debts between sub LLCs. Texas is one of the states that permits formation of Texas Series LLCs.
Can I form an LLC in Texas without an address in the state?
Yes, an LLC can be formed outside of Texas as long as they register with or have an office coordinator located in Texas

Also Read

Why is Texas One of the Best Places for Business

One of the key reasons why Texas stands out as a top destination for business is its pro-business climate. The state boasts a low tax burden, with no personal income tax and a business-friendly regulatory environment that makes it easy for companies to establish and expand their operations. This commitment to supporting business growth has played a significant role in driving Texas’ economic success and attracting companies from a wide range of industries to the state.

Another factor that sets Texas apart is its abundant natural resources and strategic location. The state is home to a wealth of natural resources, including oil, natural gas, and agriculture, which have fueled its economy and supported industries such as energy, manufacturing, and logistics. In addition, Texas’ central location within the United States makes it an attractive hub for businesses looking to reach customers across the country and beyond.

Texas also boasts a diverse and highly skilled workforce, with a strong emphasis on education and job training. The state is home to a number of top-ranked universities and research institutions, which provide a steady pipeline of talented graduates for businesses to tap into. In addition, Texas offers a wide range of workforce development programs and incentives to help companies attract and retain skilled employees, further enhancing its reputation as a top destination for business.

In addition to its economic advantages, Texas offers a high quality of life for residents and employees alike. The state’s affordable cost of living, vibrant culture, and diverse communities make it a desirable place to live and work, attracting talent and entrepreneurs from around the world. Whether it’s enjoying a night out in bustling cities like Houston or Austin, or exploring the natural beauty of the Hill Country or Gulf Coast, Texas offers something for everyone.

Overall, Texas has built a reputation as one of the best places for business by leveraging its pro-business policies, abundant resources, skilled workforce, and high quality of life. As the state continues to grow and innovate, it will likely maintain its position as a top destination for businesses looking to succeed and thrive in today’s competitive global economy.

Conclusion

Choosing the right Texas LLC formation service for your needs depends on your budget, your support level, and any additional features you may need. ZenBusiness and Incfile are excellent choices for affordable yet comprehensive LLC formation services, while LegalZoom and Rocket Lawyer may be more suitable for entrepreneurs who require ongoing legal support. Northwest Registered Agent is a great option for those prioritizing privacy and personalized customer service.

Regardless of which LLC formation service you choose for your Texas LLC, it is essential to research and compares your options thoroughly to ensure you receive the best possible support and value for your money. By doing so, you can focus on growing your business with the confidence that your legal and regulatory requirements are in good hands.

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