Creating a limited liability company is one of the most important things that you can do as a Texas business owner to protect yourself. The benefits of creating an LLC are impossible to deny, and choosing a name for your business is one of the most important steps that you must take to begin taking advantage of them. With these points in mind, these are six key things that you need to know before you name your LLC.
A Form of LLC Must Be in Your Company’s Name
One of the first things you need to understand about LLC naming requirements in the state of Texas is the fact that your business name must have a form of LLC in the option that you choose. This can be fully written out as Limited Liability Company or just Limited Liability. You can also just use the shorted LLC. Some business owners also choose variations that include L.L.C, LC or L.C. Regardless of the name you choose for your Texas business; it has to have one of these designations given here at its end.
The Name You Choose Cannot Be Misleading to the Public
Another key thing you must understand about naming your LLC in Texas is that you can not choose something that could be deemed misleading to the public. Because of this, Texas law prohibits you from using words that include division, department, board, bureau, municipal, commission or agency. Your LLC’s name is also prohibited from containing words and phrases like trust, bank, trust company, and bank and trust.
Your LLC Name Cannot Be Similar to That of Another Texas Business
A third key point for you to understand about selecting a name for the LLC you are starting in Texas is that it cannot be the same as another business. Beyond this, the name you select for your LLC cannot be presented in a way that could be deemed as being deceptively similar to the name of an existing business operation in Texas. Names that violate this requirement will be rejected upon the proposition.
Avoid Choosing a Name That Is Similar to That of a Business in Another State
Beyond the fact that you cannot choose an LLC name that is the same or deceptively similar to that of another Texas business, you also want to avoid selecting something that is identical or overly similar to that of a business that operates in another state. The reason is that you could put yourself in a situation where a business in another state comes after you legally. This is particularly the case if you choose the same/similar name as another business that sells the same types of goods or services as you do.
Having a Registered Agent Is a Texas Requirement
It is a requirement in the state of Texas when naming an LLC that you have a registered agent. There are several options when it comes to this requirement. The registered agent that you select can be an individual Texas resident. This can include the actual LLC owner or its workers. It can also include a Texas company or a company registered to conduct business in the state of Texas. The registered agent for your LLC agrees to accept legal notifications that come in on behalf of the company. This agent must have a physical address that is registered in the state of Texas to be eligible. A P.O. box is not allowed for this.
There Are Required Forms You Need to Know About
There are two primary forms that you need to be aware of before you name your LLC that you will operate in Texas. The first one is Form 205. This is the main form that must be completed to get your LLC going. Beyond this, there is also a Form 304, which must be filled out by any company that has already formed an LLC in another state but wishes to begin operating in Texas as well.
There is no doubt that creating an LLC for your Texas business is a move that carries a lot of benefits and offers you key protections. Choosing the right name is important, and keeping the points presented here in mind will help you during your decision-making process.
