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Taxes - There is no personal income tax in Texas and business taxes are very low. Certainty - There are more LLCs registered in Texas than any other state in the country. Texas also has a larger body of legal precedent than most other states.
The LLC needs to file a 1065 Partnership Return and issue a Schedule K-1 to the LLC owners. The K-1s report each owner's distributive share of profits. And the K-1 income ?flows through? to the owners. The income taxes are then paid by each owner on their personal income tax return (Form 1040).
In Texas, you will start your single-member LLC by filing a Certificate of Formation. This is done with the Secretary of State and requires a few items: Official name of your LLC. Name and address of the registered agent.
Form 205 (Revised 12/21)Certificate of Formation Limited Liability CompanyThis space reserved for office use.Submit in duplicate to: Secretary of State P.O. Box 13697 Austin, TX 78711-3697 512 463-5555Filing Fee: $300
Advantages of Creating an LLC in Texas Easy to form and maintain. ... Limited liability protection. ... Pass-through taxation. ... Tax benefits and options. ... Management structure. ... Name protection within Texas. ... Formation costs. ... Texas state taxes.