Unlike its owners, a Limited Liability Company (LLC) is a separate legal entity. The Texas Business Organizations Code, which outlines the guidelines for forming, managing, and dissolving LLCs, governs the formation of LLCs in Texas. Because they provide personal liability protection, tax flexibility, and management freedom, LLCs are popular among small business owners.
The proprietors of an LLC in Texas are referred to as members, and an LLC may have one or more members. Depending on the LLC’s chosen structure, either the management or the members are in charge of running the LLC. The revenues and losses of the LLC are passed through to the members, who record them on their personal tax returns rather than being taxed separately as a separate business.
Choosing a name for the business is one of the first steps in forming an LLC in Texas. The name must be original and unregistered with another Texas corporate organization. The Texas Secretary of State permits reserving a name for 120 days in order to guarantee that it is accessible. As a result, the LLC will have temporary use of the name while it prepares and submits the required documentation to formally register the business.
No other business organization in Texas may use a company name that has been reserved during the reservation period. This allows the LLC enough time to compile and submit the required papers for the business’ official registration and name reservation.
There are a few rules that must be followed in Texas when naming a small business. The name must be original and unregistered with another Texas corporate organization. Additionally, it must be distinct from other company names in Texas. The name shouldn’t be deceptive or suggest that the company is something it isn’t. Additionally, the usage of certain terms, such “bank” or “insurance,” may call for additional permissions or licences.
The governing organization for firms in South Africa is called the firms and Intellectual Property Commission, or CIPC. In order to reserve a name at CIPC for a period of six months, a charge of R50 must be paid. If the name is not utilized within six months, the reservation expires, making it accessible for use by other companies.
The Texas Secretary of State’s online database can be used to determine whether a name is already registered for an LLC in Texas. Simply access the “Business & Nonprofit” menu on the Texas Secretary of State website, choose that option, and then click “Search for Registered Entities.” You can next type in the name you want to check to see any already-registered firms using that name.