LLC Formation in El Paso, TX

A sole proprietorship is the default when you start working for yourself—there is nothing to file—but there is no legal separation between you and the business. If the business is sued or can’t pay a debt, your personal assets can be at risk.

An LLC creates that separation as long as you keep business and personal finances apart. It also looks more professional to customers and makes it easier to open a business bank account. For businesses with employees, vehicles, customers on site or contracts with larger companies, an LLC is usually worth it.

Once the Certificate of Formation is submitted online to the Texas Secretary of State, it is commonly processed within a few business days; mailed filings take longer. The state charges its own filing fee, which is separate from any preparation service.

Before filing, the business name must be available and distinguishable from other Texas entities, and you need a registered agent with a Texas address. After approval, getting an EIN from the IRS online is usually same-day, and then you can open your business bank account.

You need an Employer Identification Number if your LLC has employees, has more than one member, or elects to be taxed as a corporation. In practice, almost every LLC gets one, because banks require it to open a business account and many clients ask for it on W-9 forms.

The EIN is free when you apply directly with the IRS. It keeps your Social Security number off invoices and tax forms you share with clients, which also reduces the risk of identity theft.

Texas LLCs must file an annual franchise tax report with the Texas Comptroller, generally due May 15. Many small businesses owe no franchise tax because their revenue is under the no-tax-due threshold, but they still must file the report and the Public Information Report.

Missing those reports can lead to penalties and eventually to the state forfeiting your company’s right to do business. You also file your federal income tax return each year. We help clients keep these dates on their calendar so the business stays in good standing.

Yes. You do not need to be a U.S. citizen or resident to form an LLC in Texas. The company does need a registered agent with a physical Texas address. Non-U.S. owners can obtain an EIN from the IRS even without a Social Security number, using the IRS process for foreign applicants.

Opening a U.S. business bank account is often the harder step, because banks set their own identification requirements. Tell us your situation at the consultation and we’ll explain what documents you will likely need.

By default, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership, which means all profit is subject to self-employment tax. An LLC can elect to be taxed as an S corporation, where the owner takes a reasonable salary and some profit may avoid self-employment tax.

The election only makes sense once profit is high enough to cover the added payroll and filing costs, and it brings more paperwork. We review your expected income with you before recommending it, and we coordinate the decision with your bookkeeping and tax return.