Does an LLC protect my personal assets?

Generally, yes. An LLC separates business liabilities from your personal assets, so business creditors usually cannot reach your home or savings. The shield can be lost through a personal guarantee, your own wrongful act, or fraud.

How is an LLC taxed in Texas?

By default an LLC is a pass-through entity, so profits are reported on the members’ personal returns and the company pays no federal income tax. LLCs are subject to the Texas franchise tax, but most small businesses fall below the no-tax-due threshold and simply file an information report.

Do I need an operating agreement in Texas?

Texas does not require you to file one, but you should have one. It governs ownership, profit allocation, and management, and it overrides the default statutory rules that would otherwise apply.

How many owners can an LLC have?

One or more. There is no maximum number of members, and members can be individuals or other entities. Choosing and setting up the right entity affects your taxes, your liability, and how easily you can raise money or bring on partners. Reidel Law Firm helps Texas owners form and structure LLCs on a flat fee, with clear answers and direct attorney access. Talk to a Texas business attorney before you file.

What Is an LLC? A Texas Business Owner's Guide

A limited liability company (LLC) is a business entity that legally separates you from your company — your personal assets are shielded from most business debts, while profits pass through to your own tax return instead of being taxed at the company level. It combines a corporation’s liability protection with the tax treatment and management flexibility of a partnership or sole proprietorship, which is why the LLC is the default choice for most Texas small businesses.

What an LLC Does for You

An LLC gives you two things a sole proprietorship cannot: a liability shield and a separate legal identity. The people who own an LLC are called members, and an LLC can have one member or many. Members can be individuals, trusts, estates, corporations, or even other LLCs, and there is no cap