Forming a limited liability company (LLC) and maintaining its books and records may seem like simple tasks at first. However, seemingly straightforward formation and drafting decisions or the failure to keep proper records can have far-reaching consequences. For example, how the LLC's governing documents (also called organizational documents) are drafted can have a significant effect on members' rights and members' and managers' exposure to liability and on the relationship between members.

When forming a Texas LLC, organizers must, among other things:

Maintaining LLC status after formation calls for careful attention to reporting and filing requirements in Texas, as well as certain actions required by Texas law, including proper record keeping.

Parties must also consider the applicability of reporting requirements under the Corporate Transparency Act (CTA) in connection with forming or maintaining an LLC. For more information on the CTA, see Practice Note, Corporate Transparency Act (CTA) Beneficial Ownership Reporting, Corporate Transparency Act (CTA) Rules and Publications Tracker, and the Corporate Transparency Act (CTA) Toolkit.

This Toolkit provides resources to help with the formation, maintenance, and termination of a Texas LLC.