Why is it important to have an LLC before getting a TABC license?

If you do not have an LLC, we can help you register one. If you are planning to start a business that involves selling alcohol in Texas, you will need to obtain a TABC (Texas Alcoholic Beverage Commission) license. However, before you can get your TABC license, it is recommended that you first create an LLC (Limited Liability Company). 

Benefits of having an LLC:

  1. Facilitates Process of Buying/ Selling a Business With A TABC License: An LLC can help streamline the process of transferring the TABC license, as the buyer can simply assume ownership of the LLC and its assets, including the license. By forming an LLC, the buyer or seller can limit their personal liability in the transaction and protect their personal assets. 
  2. Protection of Personal Assets: Creating an LLC separates your personal assets from your business assets. This means that if your business incurs debts or liabilities, your personal assets (such as your home or personal savings) are not at risk.
  3. Liability Protection: If someone is injured or harmed as a result of your business operations, an LLC can protect you from personal liability. This means that your personal assets will not be at risk if your business is sued.
  4. Credibility: Creating an LLC adds credibility to your business. It shows that you are serious about your business and willing to take the necessary steps to protect your personal assets and your customers.
  5. Tax Benefits: LLCs have the flexibility to choose how they are taxed. By default, LLCs are considered pass-through entities, which means that the business’s profits and losses are reported on the owner’s personal tax return. This can result in tax savings compared to a traditional corporation.
  6. Easier to Obtain Financing: Lenders are often more willing to provide financing to LLCs than to sole proprietorships or partnerships. This is because LLCs offer more protection to lenders in the event of a default.
  7. Ease of Management: LLCs are easy to manage and require minimal paperwork. You don’t need to hold regular meetings or keep minutes like you would with a corporation.

We will walk you through the entire process. Once we have everything in order, we will apply for your TABC license on your behalf. The application process can take several weeks, so be sure to plan ahead and allow enough time for processing.