You can use the same name in Texas that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.  Your Texas Foreign LLC name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.

In any case, the Texas Foreign LLC name that you choose must be distinguishable from the name of any other registered Texas LLC or other business entity and the name must also be different from any reserved names on record with the state of Texas.  Your Texas Foreign LLC name must not imply that it was formed for a purpose other than that stated in the Articles of Organization for your Domestic LLC and your Texas Foreign LLC name must not be a name that is likely to mislead the public.

The name of a Texas Foreign LLC must include the word "Limited Liability Company" or or the abbreviation "LLC" or "L.L.C.".

It's important to choose a good name for your Texas Foreign LLC because if you want to change it after you qualify you will have to file amended documents with the Texas Secretary of State (and pay a fee).

In order to Qualify as a Foreign LLC in Texas you must file Registration Documents with the Texas Secretary of State.  In Texas the registration documents are named "Application for Registration of a Foreign Limited Liability Company".

The registration documents must include certain specific information about your Texas business.  If the LLC Registration Documents do not conform exactly to state of Texas Foreign LLC requirements they will be rejected. 

If you need to change any of the information on your registration documents after your Texas Foreign LLC has been approved, you may amend the registration documents for your Texas Foreign LLC but you will have to pay a fee to the state of Texas in order to make the changes official.

There is no Corporate Income Tax in the state of Texas.  You may choose that your Texas Foreign LLC is to be taxed as a C Corporation or S Corporation. 

A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.  C Corporations pay a Corporate income tax to the state if that state taxes Corporations. 

You may choose to have your Texas Foreign LLC taxed as a S Corporation.  S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.  S Corporations do not pay any Texas Corporate Income Tax.

Texas does not collect personal or Corporate Income Tax.  However, a Texas Corporation must pay the Texas Corporate Franchise Tax.

The Texas Corporation Franchise Tax is based on the Texas Corporation's taxable margin.  Margin should equal the least of three calculations based on eligibility:

• Total revenue minus cost of goods sold
• Total revenue minus compensation
• Total revenue times 70 percent

The Texas Corporation Franchise Tax rate is 1% for most Texas Corporations.

If you form a Single Member Texas Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Texas Foreign LLC will be taxed as a Sole Proprietorship.  If you form a Multiple Member Texas Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Texas Foreign LLC will be taxed as a Partnership.

Note that forming a Texas Foreign LLC doesn't take the place of obtaining a local business license, tax registration certificate, or other required business permits.  A Texas Foreign LLC merely creates an ownership structure that limits the owners' personal liability.  You may still need to take care of getting set up to do business with your local government.

Depending on the nature of the business and the location of your Texas Foreign LLC within Texas you may need to get one or more local business licenses or permits.  The business licenses or permits that are required for your Texas Foreign LLC vary depending on your business activities and the specific locations within the state of Texas in which you want to conduct business.

If your Texas Foreign LLC will be selling products in Texas you may be required to obtain a Reseller's Permit from the appropriate Texas state agency.  If your Texas Foreign LLC will be selling products in Texas you will also be responsible for all applicable local and state of Texas sales taxes if there are any.

The Texas Annual Report includes basic information about your Texas Foreign LLC including information on your business location as well as the names of the Officers and Directors.

Failure to submit a properly completed Texas Annual Report to the Texas Secretary of State on or before the due date may subject the Texas Foreign LLC to being administratively dissolved in the state of Texas or having its authority to transact business in the state of Texas revoked by the Texas Secretary of State.

Penalties may accrue if you fail to file any Texas Foreign LLC Annual Report to the Texas Secretary of State by the due date.

Foreign LLCs that either do business in the state of Texas or that derive income from sources within the state of Texas are subject to Texas and federal tax laws.  If you are engaged in intrastate business and derive income from other states besides Texas, you must allocate the amount of income derived from the state of Texas in order to determine your Texas state taxes.