Forming an LLC in Texas - How to Establish Your Company's Identity
If you're starting a business, hopefully you've given a lot of thought and even made a decision in regards to the structure of your business venture. If that due diligence has led you to form an LLC, or Limited Liability Company, then you've chosen a structure that carries with it many advantages.
Now that you've gotten past the initial decision and paperwork requirements, there is more work to be done in order to fully establish your LLC as an entity. You have already complied with everything that the State of Texas requires, but you also need to establish a corporate identity with your partners, your customers and any financial institutions who will be working with you throughout the life of your business. Below are a few recommended steps to make sure this happens.
Establish a Separate Bank Account
When your paperwork is file with the state, you need to choose a bank and open an account in the name of your LLC. Doing so is relatively simple, and it's much like the steps necessary to opening a personal bank account. Having a separate bank account will not only make your accounting much easier, but will also save you a lot of stress come tax time, as you won't have to separate checks/income/expenses/etc. in order to complete a timely and accurate tax return.
Assets
If your LLC will require equipment, transportation, supplies or any other type of tangible goods, you should begin the process of putting these assets in the name of your LLC so that any tax deductions will be easy to complete. For instance, if your business requires you to drive to certain locations, and you'll be getting a new car for these purposes, you should consider leasing the car in your company's name, as you'll be able to write off most of the expenses associated with it.
Credit
Establishing and building credit for your LLC is much like building a positive credit file for yourself. You should be prepared to personally guarantee most, if not all, extensions of credit for your business for some period of time, but even if you have to do so, the credit accounts will still appear in the name of your LLC. Again, much like individual credit situations, you need to make sure that you have available credit and that you make any and all payments in a timely manner, as the faster you build credit for your business, the sooner you won't be required to personally guarantee all of your financing decisions.
Of course, these are just a few steps necessary towards establishing your LLC's identity. If you'd like to understand the entire realm of steps you should take in getting your LLC started and established, contact the professionals at Texas Legal Entities to schedule a consultation.
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