Introduction
After you register LLC in Texas, there are various maintenance requirements to protect your LLC and keep everything in good standing with the state and IRS. Each state has its own unique rules when it comes to maintaining an LLC. But generally speaking, any requirements, fees, taxes, paperwork, and additional filings are due annually. While the majority of LLC maintenance is ongoing, you might need to complete a few one-off tasks to ensure compliance and keep everything organized.
Tips For Maintaining Your LLC
Maintaining your LLC application Texas doesn’t need to be complicated. The following tips and best practices will make your life much easier, so you can sleep easy at night knowing your LLC is in good standing.
- Use a Registered Agent Service
Each state requires LLCs to maintain a registered agent. Technically, you could do this on your own but we strongly advise against that. The primary purpose of a registered agent is to receive government correspondence, service of process, and compliance-related documentation on behalf of your LLC. But if you got a free LLC in Texas and you’re using a registered agent service, you’ll typically benefit from much more than the basics. The best registered agents will help you remain compliant and ensure that all of your LLC paperwork is up to date with your state. They might handle the majority of the paperwork on your behalf with pre-filled state forms. Some registered agents will remind you of upcoming annual reports, fees, and other requirements. If you use a registered agent service, like the tools listed earlier in this guide, it will make everything easier as you maintain your LLC.
- Separate Business and Personal Expenses
This is a common problem for newly registered LLCs, especially for sole proprietors and single-member LLCs. States don’t legally require you to open a business bank account. But this is something that you should do immediately after registering your LLC. Even if you’re not doing anything wrong or illegal, the idea of using one account for business and personal transactions is a big no-no in the eyes of the IRS. If you’re ever audited, you’d be heavily scrutinized for this. Additionally, you could lose the liability protection of your LLC if you’re mixing business and personal accounts. To avoid this, just open a business checking account as soon as possible. In addition to opening a business checking account, you should also get a separate credit card for your LLC expenses. Again, this will make it much easier for you to separate your personal and business financials.
- Keep All Required Documentation in a Safe Place
Maintaining your LLC is all about staying organized. If you’ve got paperwork, documents, licenses, and everything else all over the place, proper maintenance will be a challenge. Your principal place of business or main office should include copies of the following documents:
- LLC articles of organization (and any amendments)
- LLC operating agreement (and any amendments)
- Full list of each LLC member, including their last known address, contribution, and shares
- Copy of EIN confirmation letter
- LLC meeting minutes (if required in the operating agreement)
- All copies of financial statements and tax records
- All business licenses and permits
In addition to physical copies of these documents, you could also keep them online in cloud storage for safekeeping.
Conclusion
The exact requirements for maintaining your LLC will depend on your specific state. So it’s in your best interest to consult with a business attorney if you have questions, concerns, or need some direction on what exactly is required. Instead of spending a fortune on a traditional lawyer, you should be able to get the right assistance using an online legal service
