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Partner PostsDo you need a physical property for an LLC in Texas? 

Do you need a physical property for an LLC in Texas? 

To form an LLC in Texas does not necessarily require you to have a physical property in Texas. Continue reading to find out how to form an LLC in Texas without a state address. 

Starting an LLC in Texas does require you to do a few things, like filing formation forms with the state, appointing a registered agent, creating an operational agreement and obtaining an Employer Identification Number (EIN). But does forming an LLC in Texas require that you own property or have a physical address, either in your name or the name of your LLC? No, it does not. An LLC requires a mailing address yes, but as the owner of the LLC, you do not need to own property in Texas to form an LLC. Here’s how:

The solution: a registered agent 

If someone is living in one state, say California, and they would like to form an LLC in another state, like Texas, they will be required to identify a Texas address in their Certificate of Formation forms. However, this does not require that they have physical property in Texas, and here’s where a registered agent comes in. Hiring a registered agent will solve the problem. Part of the services registered agents provide for LLC is a physical address in the state in which the LLC, and the individual or service acting as a registered agent operates. In other words, a Texas registered agent can provide an LLC with a physical address to where mail pertaining to the LLC can be sent. An LLC can use the physical address of their registered agent as their own. All legal documents, tax forms, notices of lawsuits, government correspondences, and all other service of process, will be sent to the address of the registered agent, and it is the responsibility of the registered agent to accept these service of process documents on behalf of the LLC. It is also part of the registered agent’s duty to notify the LLC when such documents and notices are received. 

So to answer the question, forming an LLC in Texas does require a physical property but that does not mean the LLC necessarily needs to physically own the property. Using the physical address of a registered agent, as the LLC’s address, is a good way to solve the problem if buying a property in Texas, in your name or the name of the LLC is not a feasible solution.

Other legal requirement of forming an LLC in Texas

In the US, any legal entity is allowed to form an LLC. This includes individuals, over the age of 18 with the legal capacity to make sound decisions, and also corporations. A corporation can only form an LLC under the condition that it becomes one of the LLC’s members or partners. Generally speaking, any legal adult has the option of forming an LLC. Other legal requirements of forming an LLC in Texas include filing a Certificate of Formation with the Texas Secretary of State, creating an Operating Agreement, which outlines an LLC’s ownership and management procedures, and obtaining the appropriate business licenses and permits, which depend on the industry and location of the LLC. The State of Texas’ Work Section and the local county clerk’s office will be able to provide more details on the licenses and permits an LLC in a specific industry requires. Only once the correct licenses and permits are obtained, may an LLC open and start operating. It is important to adhere to these legal steps and requirements to successfully form an LLC in Texas. 

It has become overtly clear that a physical property is not needed to form an LLC in Texas, and that the services of a registered agent, which an LLC is legally required to appoint, can provide a physical address to where mail and other service of process can be sent and be received on behalf of an LLC. To find out more about how to form an LLC in Texas, or to get in touch with a Texas registered agent, visit TRUiC’s website and discover all their how-to and step-for-step guides and videos on forming an LLC, as well as their links to professional LLC formation services and registered agent services. 

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