A Certificate of Formation must be submitted to the Texas Secretary of State to establish an LLC there. The LLC is perpetual once it is created. To maintain the LLC’s good standing, certain continuous conditions must be fulfilled, such as filing an annual report and paying franchise taxes.
Since an LLC is a separate legal entity from its owners, the assets of the LLC belong to the LLC and not to the individual owners. As a result, the owners’ personal assets are typically shielded from litigation or debts made by the LLC, providing liability protection for them.
The owner, who is often referred to as a member, is the sole owner of the LLC’s assets in a single member LLC. However, to further safeguard the owner’s personal assets, it is crucial to have separate books and accounts for the LLC.
Yes, an LLC is able to invest just like any other type of business. It’s crucial to keep in mind that the LLC’s assets are distinct from the owner’s personal assets; as a result, whatever investments the LLC makes are owned by the LLC, not the owner.
In conclusion, even though Texas does not need you to renew your LLC annually, there are still vital ongoing procedures to keep your LLC in compliance with the law. It’s critical to keep in mind that an LLC is a separate legal entity from its owners, and the LLC, not the owners individually, is the owner of the LLC’s assets. As a result, the owners are protected from responsibility, and the LLC is free to make investments just like any other type of company.
In Texas, an LLC is eligible to obtain a real estate license. However, the LLC must have at least one member who is a duly authorized Texas real estate broker. The LLC must also fulfill all other conditions for state-issued real estate licensees, including registration with the Texas Real Estate Commission.
In Texas, a Realtor may indeed be a S corporation. The S corporation classification, however, should be understood to be a tax categorization rather than a specific legal business form like an LLC or a corporation. A formal body, such as an LLC or a corporation, must be created before a realtor can opt to operate as a S corporation with the IRS. Realtors should speak with a tax expert and an attorney to figure out the appropriate legal and tax structure for their company.