Since 1992, businesses in Texas have had the option of filing as limited liability companies. A limited liability company formed in Texas is a hybrid form of business with characteristics of both a limited partnership and a corporation. An individual member of a limited liability company generally is not liable for the debts or liabilities of the company except to the same extent a corporate shareholder would be personally liable for the corporation’s debts or liabilities.
To form a limited liability company, a Certificate of Formation and appropriate fees must be filed with the Texas Secretary of State. Certain records must be kept and made reasonably available to members upon request. There are also restrictions on the name such a company may use. In many respects, the limited liability company operates in the same manner as a general partnership.