Texas business owners might be familiar with the 205 form. The preservation of your limited liability corporation (LLC) in the state depends heavily on this document. We’ll go into detail about what the 205 form is, why it’s important, and how to file it in this article. We’ll also respond to a few more frequently asked questions about LLCs in Texas.
Let’s start with the fundamentals first. The Certificate of Formation for a Limited Liability Company is another name for the 205 form. Anyone wishing to create an LLC in the state of Texas must submit this form to the Texas Secretary of State. It formally forms your company as a legal entity and registers it with the state.
The 205 shape, however, is a continuing process. Texas requires LLCs to submit an Annual Report, sometimes referred to as the 811 form, which informs the state of any changes to your company, such as ownership or address changes. The status of your LLC must be maintained by filing this report each year.
Now let’s talk about Texas LLC renewal. Although your LLC isn’t strictly required to “renew” each year, you still need to submit the aforementioned Annual Report. If you don’t, you could face penalties, fines, and even have your company’s legal status revoked. The good news is that submitting the Annual Report may be done online, which streamlines the procedure. Speaking of fees, the current amount establishing an LLC in Texas is $300 per year. You must pay this fee when you submit your annual report. Remember that this fee could alter in the future, so it’s always a good idea to confirm the most recent price before filing.
Let’s now discuss the distinction between an LLC and a DBA. DBA, or “Doing Business As,” is a fake name that you can use for your company instead of your legal name. Say, for instance, that despite the fact that your LLC is called “Smith & Johnson, LLC,” you wish to promote your services as “Smith & Johnson Consulting.” To utilize that name, you would submit a DBA form. However, unlike an LLC, a DBA offers no legal protection for your company.
So who is able to form an LLC in Texas? Who is eligible to join an LLC? Anyone who is at least 18 years old and is not otherwise barred from doing so. Individuals, other LLCs, businesses, and even international entities are included in this. The procedure of submitting your Certificate of Formation can be done online or by mail, and it usually takes a few weeks.
In conclusion, everyone wishing to create an LLC in Texas needs to have a copy of the 205 form. By filing it, you create a legal entity for your company and shield yourself from liabilities. Keep track of any fees or adjustments and don’t forget to file your annual report. With these measures in place, you can concentrate on expanding your company without worrying.