Dallas, TX asked in Tax Law and Business Formation for Texas

Q: In Texas, can you use LLC before approval from Secretary of State?

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1 Lawyer Answer
John Michael Frick
John Michael Frick
Answered
  • Frisco, TX
  • Licensed in Texas

A: Since the Texas Secretary of State processes certificates of formation and certificates of authority fairly quickly (2-3 days), this issue rarely comes up. Technically, you cannot do business in Texas in a company name until it is registered to do business in Texas. But, if you do, once it is registered, prior acts are automatically attributable to the company. So no harm, no foul. But, if you do and your registration is denied for some reason (most likely being that there is already another business using the exact same name in Texas), you are individually personally liable for the acts you engaged in using the company's name.

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