Registration of a foreign LLC in TX

[Natka]

Hello,

TX form 304 (application for registration of a foreign LLC) proposes 3 types of answers for the clause “Effectiveness of Filing”. I wonder why someone select variant “C” (This document takes effect upon the occurrence of a future event or fact, other than the passage of time. ). I don’t understand clearly what type of events can cause the form 304 to take effect in the future. Could you please give me a few examples of these events/facts? Can this be used to prevent lawsuits?

Thank you very much!

 

[Taxing Matters]

Hello,

TX form 304 (application for registration of a foreign LLC) proposes 3 types of answers for the clause “Effectiveness of Filing”. I wonder why someone select variant “C” (This document takes effect upon the occurrence of a future event or fact, other than the passage of time. ). I don’t understand clearly what type of events can cause the form 304 to take effect in the future. Could you please give me a few examples of these events/facts? Can this be used to prevent lawsuits?

Thank you very much!

It is not used as a way to prevent lawsuits. It is simply used as a way to control the timing of when the existence in the state would take effect. For example, a Nevada casino might want to start sports betting in another state now that the Supreme Court tossed a federal law that prohibited other states from allowing sports betting. But before it can set up shop, that state has to repeal its laws against sports betting and set up whatever regulation of sports betting that it wants. So the casino might start the process of registering a LLC that it has in that other state but have that LLC filing onliy become effective on the date that the state allows sports betting. That way, it is pretty much ready to go from day one when and if the state does allow it, but until that date the casino doesn’t have to comply with annual filing requirements, etc., that the the state has for LLCs. In other words, it's a way of getting ready for something that you might do but without the administrative overhead to deal with while waiting.