Picking a name is the first official step in creating your Texas LLC. It's more than just a creative exercise; your chosen name has to follow specific legal rules set by the state. Getting this right from the start saves you from headaches and potential rejections down the line.

First, the name must include the phrase "Limited Liability Company" or one of its abbreviations, like "LLC," "L.L.C.," "Ltd. Co.," or "Limited Company." This tells the public that your business has limited liability protection. Second, your name can't be the same as, or deceptively similar to, the name of any other business entity on file with the Texas Secretary of State. This prevents public confusion.

Before you get too attached to a name, you need to see if it's available. You can do this by searching the Texas Secretary of State's online database through their SOSDirect portal. A quick search will tell you if another company has already claimed your desired name.

Pay close attention to the "deceptively similar" rule. Minor differences in punctuation, articles (like "a" or "the"), or abbreviations might not be enough to make your name unique. For example, if "Austin's Best Tacos, LLC" is taken, "Austin Best Tacos LLC" will likely be rejected. The goal is to ensure your business is clearly distinguishable from all others.

Found the perfect, available name? You can lock it down. Texas allows you to reserve a business name for 120 days. This gives you time to prepare your formation documents without worrying about someone else snagging the name.

To reserve your name, you'll file an Application for Reservation or Renewal of Reservation of an Entity Name, also known as Form 501. The filing fee is $40. This is an optional but wise step, especially if you aren't ready to file your company's formation documents immediately.

Once your name is chosen and secured, you're ready for the next steps in forming your business.