2 Thoughts on What are the leagel steps in starting a small service business in the state of texas?
  1. Reply
    EvilDead
    February 24, 2013 at 6:59 pm

    Call the secretary of state’s office to incorporate and set up a sales tax number. You can download the forms from the internet site. http://www.sos.state.tx.us/

    They can also help you with some small business pointers.Good luck.

  2. Reply
    JFAD
    February 24, 2013 at 7:03 pm

    An LLC is a hybrid between a partnership and a Corporation in that it combines the “pass-through” treatment of a partnership with the limited liability accorded to corporate shareholders. Two members required: Unlike a corporation which can have as few as one shareholder, most states require that an LLC consist of two or more members (owners). States are allowing single-member LLCs. Note that the IRS may treat a single person LLC differently than an LLC with more than one member.

    Like limited partnerships and corporations, an LLC is recognized as a separate legal entity from its “members.” Ordinarily, only the LLC is responsible for the company’s debts thus shielding the members from individual liability. However there are some exceptions where individual members may be held liable: where an LLC member has personally guaranteed the obligations of the LLC, he or she will be liable.

    Management and control of an LLC is vested with its members unless the articles of organization provide otherwise.

    The existence of an LLC begins upon the filing of the Articles of Organization/Formation with the Secretary of State. The articles must be on the form prescribed by the Secretary of State. Among the required information on the form is the latest date at which the LLC is to dissolve and a statement as to whether the LLC will be managed by one manager, more than one manager, or the members.

    To validly complete the formation of the LLC, members must enter into an Operating Agreement. This Operating Agreement may come into existence either before or after the filing of the Articles of Organization and may be either oral or in writing.

    Format for Articles of Formation at this link: http://www.sos.state.tx.us/corp/forms/205_boc.doc

    You can obtain a free form for the Articles of Organization at this link: http://www.ilrg.com/forms/llc-opag-man/us/tx

    Links to forms from the Secretary of State for non-sole proprietorships, federal tax sites for Employer ID Number (EIN) and Employment Taxes, Texas business tax responsibilities, Texas Unemployment Taxes, laws and requirements for employers, Unemployment Tax registration, registering your Sales Tax Number, and Franchise Tax information for corporations and limited liability companies. http://business.texasonline.com/category.jsp?language=eng&categoryId=1.3

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