Texas has one of the most comprehensive LLC laws in the United States. This is because the TX lawmakers know that this kind of legal entity can be used for many purposes to offer serious benefits and advantages to its owners. While many states only offer one kind of LLC entity, the Texas Limited Liability Company Act, found under Title 3, Chapter 101 of the Texas Business Organizations Code, authorizes 4 distinct types that can be formed in Texas.
DOMESTIC TEXAS LLC
The domestic type is the most popular choice and is used primarily for operating a small business. There are no limitations on the purpose and so it can also be used for other purposes such as asset protection planning, joint ownership of property or for investment.
Any person over the age of 18 can form one and this kind can have a perpetual life. If the owners desire to limit the duration, it can be limited in the domestic Texas LLC filing documents.
PROFESSIONAL TEXAS LLC
The Texas Limited Liability Company Act has specific provisions enabling the creation of a professional entity to provide licensed professional services. This kind of entity has more limitations in that the business purpose is limited to providing specific types of licensed services and owners of the business entity usually have to be professionals licensed to provide the relevant service.
NON-PROFIT TEXAS LLC
Unlike most other states, Texas specifically allows for a non-profit limited liability company. Section 2.002 of the Texas laws addresses what this kind of entity can engage in. Purposes include charitable, educational, and religious ones.
This is the preferred choice for fraternities and trade associations as well. If the business entity is seeking tax exemptions, it is important that you consult with an accountant to ensure compliance under the Internal Revenue Code.
FOREIGN LLC IN TEXAS
A foreign LLC is one that is organized in another state but desires to conduct business in Texas. There is an entire section of the Texas laws that address the regulation of a foreign LLC. First, it needs to file for a certificate of authority with the Texas Secretary of State.
Owners of a foreign LLC can be subject to fees and penalties for failure to comply with the Texas foreign law requirements.
AUSTIN BUSINESS VALUATION
AUSTIN CERTIFIED PUBLIC ACCOUNTANT
SAN ANTONIO LITIGATION SUPPORT
SAN ANTONIO BUSINESS VALUATION
For small business, the domestic LLC is the right choice of [http://www.texasbusinessformation.com/texas_limited_liability_company.htm]Texas limited liability company entities.
For a FREE Texas LLC Guide summarizing the Benefits to Business Owners or for a FREE Texas LLC Name Search: http://www.TexasBusinessFormation.com. Article Source: [http://EzineArticles.com/?Texas-Limited-Liability-Company---The-Four-Types-of-Texas-LLC-Entities&id=2063601] Texas Limited Liability Company - The Four Types of Texas LLC Entities
