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Foreign LLC in Texas (Step-By-Step Guideline)

Max Smith

Reading Time: 5 minutes

Do you wish to expand your domestic LLC business in the Lone Star State? Then, why not set up a foreign LLC in Texas? You will have many facilities and enormous benefits.

You only need a proper guide to register a foreign Texas LLC. The steps are simple and formal to complete the foreign LLC registration smoothly. In fact, you can do it yourself. 

We will explain the steps and provide details about each one. As a result, you will learn the right approach to completing each step. 

So, without much further ado, let’s jump straight to our point: steps to register foreign Texas LLCs. 

Some steps must be followed to register foreign LLCs in Texas. Here are those with the necessary details:

1. Check for an Available Name

The first step is to name the organization. But you cannot name it whatever you want. You must check if that name is available in your area and whether it complies with Texas’ naming requirements.

Moreover, you can check whether the desired name is available on the Texas Secretary of State’s website. Also, put “LLC,” “L.L.C.,” or “Limited Liability Company” in that name.

2. Appoint a Registered Agent

Every LLC, local or foreign, needs a registered agent. That agent can be an individual or a company. It is their responsibility to receive official correspondence on behalf of the LLC.
The condition of being an agent is that they should have a physical address in the state and be available during office hours. It means you can only be your own agent if your Texas LLC is domestic, not foreign.

3. File Certificate of Formation

Here starts the official registration step—filing for a Certificate of Formation with the Texas Secretary of State. You can also file this online through their website or by mail.

In the Certificate of Formation, you may provide information like:

  • The LLC’s name.
  • The LLC’s office address.
  • The details of the registered agent.
  • The LLC’s duration, and more.

Lastly, double-check all the information before filing for the Certificate of Formation.

4. Pay the Filing Fee

A filing fee is due for every LLC registration when submitting the Certificate of Formation. The amount is not fixed; in fact, it sometimes varies. 

We advise you to check for the current fee. It is constantly updated and scheduled on the Secretary of State’s website.

5. Apply for Foreign Qualification

As your Texas LLC is foreign, you must file more than the Certificate of Formation. You must also apply for registration, also known as Foreign Qualification. To complete this step, go to the Texas Secretary of State website and fill out Texas Form 304.

You will put information about the LLC’s jurisdiction of formation in there. Also, provide other relevant details, like the main office address, its members, etc.

6. Obtain an EIN

EIN stands for Employer Identification Number. You will likely need it to establish a business tax account in Texas.

To obtain this, go to the IRS. It is a federal agency that stands for Internal Revenue Service.

7. Comply with Tax Requirements

You must comply with the tax requirements. Ensure it is done diligently. There are many taxes, like:

  • State taxes,
  • Sales and use tax,
  • Franchise tax,
  • Employment tax,
  • Property tax, etc

Lastly, you won’t have to pay for all of them. Based on the nature of your operations, research which taxes apply to your business.

8. Adherence to Additional Regulations

After getting the certificate and paying taxes, there are other requirements. You must acquire additional licenses, permits, or certifications.

Acquiring these will allow your foreign LLCs in Texas to operate smoothly without disruption. For this:

  • Decide the nature of your business.
  • Research which ones are required and apply for them. 
  • Comply with any industry-specific regulations.

Besides completing these steps, here are some additional points to consider:

  •  Keep Separate Accounts

You should keep separate accounts and maintain their records carefully. One account should be for your Texas LLC and another for your home-state LLC.

This recommended step will distinguish their financial activities. It is helpful for tax and legal purposes.

  • Create an Operating Agreement

Although the state of Texas does not require an agreement, it is advised that one be created. The agreement clarifies the members’ rights and responsibilities and the LLC’s operational tasks. It also outlines the ownership structure and management system.

Nevertheless, keeping a document like this will be helpful if any legal disputes need to be resolved.

  • Submit Annual Report

In Texas, LLCs must turn in their annual report every May 15th. The filing fee is different for every Texas business.

The state needs this report to keep track of your LLC’s current situation. Undoubtedly, it will help them to have up-to-date information about your company.

Conclusion​

As we reach the end, we believe you have gained the knowledge to set your foreign LLC in Texas in a healthy position to establish and flourish. Complete each step with due diligence, from choosing the appropriate name to submitting the annual report.  

We advise you to seek legal counsel if you still have any natural doubts or questions. They will have solutions that are appropriate for your questions on how to get an LLC in Texas. 

Key Points

Here are the key points in the entire discussion:

  • Steps for registering a foreign Texas LLC:
    • Check for an available name
    • Appoint a registered agent
    • File Certificate of Formation (fill out Texas Form 304)
    • Pay filing fee
    • Apply for Foreign Qualification
    • Obtain an EIN
    • Comply with tax requirements
    • Adherence to additional regulations
  • Some additional points to consider:
    • Keep separate accounts
    • Create an operating agreement.
    • Submit Annual Report

Frequently Asked Questions

What is the Texas foreign entity registration fee?

You may pay $750 to the Texas Secretary of State as a filing fee for registering your foreign LLC. Plus, you can also count on the 2.7% charge of the filing fee for credit card transactions.

Can a Texas LLC do business in another state?

Of course! A Texas LLC can establish a business in another state. However, it should register with the estate and the laws and regulations of that particular state. 

What is the foreign qualification in Texas?

It’s actually a process of registering your LLC or business in Texas when its home state is another one. If you have an LLC in another state, you can also run it in Texas, but it’s a foreign LLC. So, you must register it here in Texas. The process is called foreign qualification. Moreover, you may apply for registration with the Texas Secretary of State for the associated fees. 

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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