Free Texas LLC Operating Agreement Templates

A Texas LLC Operating Agreement refers to a formal instrument used by the owners of the organization to establish the guidelines they will follow when running the company. Draft this document once you plan to open an LLC – whether you are doing it on your own or this is a joint venture, a manual written to explain how the entity functions, what the members do, and how the business will overcome obstacles on its way is going to be a valuable addition to your internal rules.

Texas LLC Operating Agreement Template Types

• A Texas Single-Member LLC Operating Agreement Template should be composed to separate the property of a single owner from the property of the business and verify the special tax status the company has – it is not required to file a tax return in the entity’s name. Moreover, potential business partners and investors can ask you about the organizational structure of the company – this document will further certify the legitimacy of your operations;
• Texas Multi-Member LLC Operating Agreement Template. Instead of hoping verbal agreements will be respected by all the owners without objection, you can protect the interests of the company by defining the rights and responsibilities of the members when you form the organization – the rules you include will allow you to cope with conflicts much quicker and with minimal financial loss.

How to Form an LLC in Texas?

If you have decided to start an LLC in the territory of Texas, here are the instructions for you to adhere to:

1. Find a person or entity willing to help you out with governing bodies will send you upon the formation of the business or in the future. It can only be a resident of the state or company permitted to operate in Texas.
2. Register your company with the Secretary of State. You have to do it by mail or on the official website – in both cases, the application must be accompanied by a fee paid by check or credit card. Make sure you choose the right application package – there are different documents available for businesses making their first steps in the industry and entities that are expanding.
3. Work on the contents of the Texas LLC Operating Agreement Template. The members are free to negotiate the provisions they will put in writing and later implement. At a minimum, this document has to indicate the name of the company and its objectives in an initial stage and in the long run, identify the members and managers and outline their roles and contributions to the capital, explain how the entity will make decisions and vote on crucial matters, record the procedures to follow when you want to welcome a new member or formalize the departure of an old one, and describe the termination of the organization in case the owners no longer want to operate a company. One of the few Texas LLC Operating Agreement requirements you have to comply with is the approval of the terms and conditions of the document by the LLC owners – they acknowledge their acceptance by signing the papers.
4. Contact the Internal Revenue Service by sending them a letter or reaching out to them online to obtain an employer identification number. This unique number will further build and maintain the credibility of your business – without it, it will be impossible to hire employees, apply for a loan, or sign a favorable contract with a client, so make it one of your priorities when you open an LLC.

Is an Operating Agreement Required for an LLC in Texas?

Despite the fact company owners are not obliged to prepare an LLC Operating Agreement in Texas, there are many reasons to have one in place anyway:

1. Create your own rulebook suitable for the entity. The generic laws of the state may not reflect the true nature of the company, and it is important to cover the nuances only the members are aware of – otherwise, the issue will be addressed the way neither of the owners prefers.
2. You may think disputes are impossible in case you are starting a business with a family member or friend – the statistics say otherwise. It is essential to determine what the entity is supposed to do whenever its owners have a disagreement – you can spell out the measures to take and elaborate on the hierarchy of your company so that you are not forced to resolve the matter in court or lose money.
3. Safeguard your personal assets – an operating agreement will serve as proof showing authorities, courts, and business partners your property is separate from the assets of the business. This way, even if the company is insolvent, your belongings are safe from being seized to cover the debts.

Still looking for a particular template? Take a look at the related forms below:

• LLC Forms;
• Partnership Forms;
• Corporation Forms.