Friday, October 19, 2018

Forming an LLC (Texas veterans only)

This post is aimed at editors who are military veterans living in Texas.
Effective from 1-1-2016 until 1-1-2020, Texas law (SB 1049) has eliminated any filing fee for creating an LLC that is wholly owned by a Texas military veteran having an honorable discharge. There is also an exemption from franchise taxes for five years, though you would have to make a lot of money to benefit from that. For anyone else, the filing fee would be $300.

Details may be found at the following link: <https://comptroller.texas.gov/taxes/franchise/veteran-business.php>.

Though I am not a lawyer and cannot offer any legal advice, I have read a very informative book written by a lawyer: Form Your Own Limited Liability Company: Create an LLC in any State, 10th Edition, Anthony Mancuso (Berkeley: Nolo, 2017). In many situations, doing business as an LLC offers protection of your personal assets from attack during litigation.

In addition, a single-member LLC is treated by the IRS exactly the same as a sole proprietorship. You file taxes for your LLC using Schedule C. So, I can keep on using TurboTax Home and Small Business software to do both my personal and business taxes.


I decided to take advantage of this situation by forming Barry's Editing & Proofing LLC. If you need my editing or proofing services, I can be reached at 214-558-9128 or barry.applewhite@gmail.com.


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