A Limited Liability Company ( LLC ) is one of the best options for incorporating new businesses, whether you're opening a restaurant, launching a web portal, or building/expanding a services network. By structuring your enterprise as an LLC, you can simplify tax filings, open business bank accounts and business lines of credit, apply for loans, and hire employees while protecting your personal assets from many business-related concerns.

While LLCs offer many advantages, the process of incorporating one can be daunting. The purpose of this article is to simplify that process, by compiling all of the important information in a 10-step guide to setting up an LLC in Texas.

The first thing you’ll want to do is chose a name for your business. Then check that name against the Trademark Electronic Search System to make sure it hasn’t already been taken. Next you’ll need to register your business with the IRS and receive your EIN, Employer Identification Number. This is a free service and typically takes less than ten minutes to apply. [Important] When applying for your EIN make sure not to write “LLC” in the business name you're applying for. After receiving your EIN, you will need to register your LLC in Texas through SOSDirect, the online portal for the Texas Secretary of State. The Texas certificate of formation costs $300.00. [Important] When filing through SOSDirect, you must include some variation of “LLC” or “Limited Liability Company” in your business name. Following the approval of your LLC, the Texas Secretary of State will email you a copy of your Certificate of Incorporation. Once you have received your certificate, you can now open a business checking account. My recommendation for new businesses is the Chase Total Business Checking account. It’s important to establish a bank account as early into this process as possible and Chase offers excellent credit and loan options once your business is better positioned. Once you have finished setting up a business bank account, your next step is to sign up for Dun and Bradstreet’s business credit reporting program. This is a free service and it is critical to have Dun and Bradstreet issue a DUNS number for your business. Now in order to establish your business credit you will need to open at least 4 trade lines with business supply companies and utility providers. The newest and easiest trade line option to sign up for is the “Nav Business Boost.” Essentially the Nav Business Boost is a service that helps you build business credit by reporting your monthly Nav payment of $40.00 to Dun and Bradstreet as a trade line. Other companies that extend trade lines to no-credit businesses are Amazon Business, Uline, and Quill. For the next several months, utilize the Net 30 accounts that your trade line partners have provided. These accounts will give you 30 days to pay-in-full whatever products you order through their websites. [Important] With Net 30 accounts you MUST pay every bill in full. Your goal is to establish business credit and any late charges will have a dramatic impact on your Dun and Bradstreet credit score. The next step in building a financially secure LLC is to apply for business credit cards. Your first choice should always be to speak with your bank, since you have already established a relationship. If you bank with Chase, the Chase Ink card is an outstanding option. Other business cards for limited credit are offered by BBVA and Wells Fargo. By this point, your LLC has trade lines, credit/checking accounts, and a strong enough rating with D&B to apply for business loans/business lines of credit. Once again, check with your bank first in order to understand their credit/loan offerings before you hit the open market. Some quality online alternatives include Kabbage, Fundbox, and Lendio. Finally, after successfully funding your LLC and establishing your business, you will need to file your taxes. [Important] Make sure to keep records of all business-related expenses. While many business owners seek the assistance of local tax professionals, online alternatives have gained traction. For an LLC, H&R Block and Turbo Tax are great options.

Now get out there kick start your future!

Disclaimer: This list is intended to be neither exhaustive or comprehensive. It is a compilation of valuable links to financial institutions that can assist you in setting up an LLC. Most industries require additional permits and licenses to operate. For industry-specific instructions please contact the Texas Secretary of State’s office.