Do I Need a Business Lawyer to Start an LLC in Texas

If you have a great business idea and know the business structure you will use to make your new venture a reality, you are on a great track. If you have decided to run a limited liability company (LLC), you might be asking, Do I need a lawyer to start an LLC?

The State of Texas does not require you to hire a business lawyer for LLC formation, but it is rarely wise to start a business without legal advice. 

The more important question is, should you use a lawyer to form an LLC? The answer to this question is almost always yes. At The Hunnicutt Law Group, we have the experience to help you form an LLC that is in line with your specific needs. 

Four Reasons to Hire a Lawyer to Set Up an LLC in Texas

Now that you know it usually is best to consult an attorney before forming an LLC, you might be asking, Why do I need a lawyer to start an LLC? The reasons to hire an attorney before forming your business are numerous. Please read below for common reasons as to why you need a lawyer to form an LLC.

1. An Attorney Can Properly Complete and File Your Formation Documents

The LLC business structure can be an excellent option for many entrepreneurs. Its formation requirements are less demanding than those of corporations while offering the same protections from personal liability that corporations offer. Although there are fewer filing requirements to start an LLC, there are still filing requirements. 

The main document you need to file to officially start your LLC is a Certificate of Formation. In your Certificate of Formation, you must provide many vital business details that you have to decide on before you form your LLC. A Certificate of Formation must include: 

  • An appropriate name for your business,
  • The name and address of your registered agent and registered office,
  • A statement about the management structure of your LLC,
  • The purpose of your LLC, and 
  • The initial mailing address of your LLC.

When it comes to choosing the name, registered agent, and registered office for your LLC, you have to follow specific rules under Texas law. A business formation attorney can ensure that you make wise decisions about these business details and properly file your Certificate of Formation. 

2. An Attorney Can Draft Your Company Agreement

An LLC’s Company Agreement is an optional business document you need to create your own rules for your business. Although this document is optional, it is usually unwise not to have one for your LLC.

In a Company Agreement, you can write your own rules about how to run your business, how to share profits among owners/members, and how to resolve internal business disputes

Your Company Agreement is a great tool for managing expectations within your LLC and helping your business run smoothly. If you do not write your own rules in a Company Agreement, you have to follow Texas’s default rules. Relying on these default rules is seldom a good choice. This is because these rules were not written with your specific business needs in mind.

The best way to draft a solid Company Agreement is to seek the advice of a knowledgeable attorney. An experienced attorney can pinpoint the legal issues your LLC could face if you fail to include specific terms in your Company Agreement. 

3. An Attorney Can Draft, Review, and Negotiate Your Third-Party Contracts

When asking why you need a lawyer to start an LLC, remember that you often need a lawyer to make sure third parties do not take advantage of you. 

You will likely need the services of other businesses and individuals to be able to run your business. Good, long-term contracts with material vendors, business support professionals, financial institutions, and real estate professionals are vital to a prosperous business. Your attorney can make sure the terms of these contracts are worth the bargain. Your attorney can also make third parties take you seriously. 

Need a Lawyer to Set Up Your LLC in Texas? Contact The Hunnicutt Law Group

The way you start is often indicative of the way you finish. Our business lawyers at The Hunnicutt Law Group can set your new business up for success. Maybe you are still asking, Do I need an attorney to set up an LLC? The best way to get an answer is to talk to an attorney about your options. You can contact us online or call us at 214-361-6740 for a consultation. We also offer video conferencing. 

Author Photo

J. Stephen Hunnicutt

Our founding attorney, Stephen Hunnicutt, set the precedent for a commitment to excellence and a focus on the client. With 25 years of experience, he has handled countless cases involving business litigation and commercial litigation. Over the years, Mr. Hunnicutt has worked as in-house counsel for a Fortune 500 energy company, a large firm, a small firm, and finally, in his own practice.

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