Asked in Real Estate Law, Business Formation and Business Law for Texas

Q: Does a Washington state based LLC need to register as a foreign entity with Texas SOS?

Hi, I live in Washington State and I am formalizing a small business LLC from my home. The main purpose of my LLC is to purchase real estate property in Texas (residential homes), and put them up for rental. I will utilize a Texas based real estate company to purchase the home(s), and utilize a Texas based property management company to manage the rental aspect. Based on this criteria, do I need to register my LLC as a Foreign entity with Texas SOS?

1 Lawyer Answer
Brian J Elliott
Brian J Elliott
Answered
  • Cedar Park, TX
  • Licensed in Texas

A: Yes - a foreign entity doing business in Texas needs to be registered with the Texas Secretary of State. However, an entity that is created for the sole purpose of owning real estate may not need to be registered in TX even though the property is located in TX. While the entity that conducts the rental business is required to be registered, there may be good reasons that these two functions may not be in the same business entity,

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