Lifehacks

Is operating agreement required in Texas?

The state of Texas does not require an operating agreement for a business to engage in trade; however, it will be unwise to operate a business without an operating agreement as it is designed to protect your personal assets in the event that the company incurs liabilities.

How do I create an operating agreement for an LLC in Texas?

In Texas, an LLC operating agreement should include the following key elements:

  1. Formation details of the LLC.
  2. The name and Texas address of a registered agent, who is designated to receive legal documents on behalf of the business.
  3. The term of the LLC.
  4. The purpose of the business.
  5. The business location.

Does a Texas LLC operating agreement need to be notarized?

Your Texas LLC Operating Agreement doesn’t need to be notarized. Once you (and the other LLC Members, if applicable) sign the Operating Agreement, then it becomes a legally binding document for all of you.

Why do you need an operating agreement?

An operating agreement is a key document used by LLCs because it outlines the business’ financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners.

Can an accountant draft an operating agreement?

While a CPA cannot write a partnership agreement or operating agreement, (it would be prohibited as unauthorized practice of law or UPL); they can provide valuable insights into aspects of the business agreement document.

Can I use PO Box for LLC in Texas?

As per Section 5.201 of the Business Organizations Code, your LLC’s Registered Agent must have a physical street address located in Texas. A Texas Registered Agent address (called the Registered Office) can’t be: a PO Box address. a mailbox rental service or telephone answering service.

What is required to be a registered agent in Texas?

To be a Texas registered agent you must:

  1. Be an individual resident of Texas or a business entity with authority to do business in Texas.
  2. Maintain a Texas physical business address which is the same as the registered office address.
  3. Consent to the appointment.