LLC Statement-of-Authority and Third-Party Reliance Requirements in Texas
At a glance
| Governing law, public authority device, and scope | Texas Business Organizations Code, tit. 3 ch. 101 plus tit. 1 chs. 3-4; ordinary domestic non-series LLC. No general public statement-of-authority device; current law uses certificate/company-agreement management structure, governing authority, officers, delegation, and § 101.254 agency |
|---|---|
| Eligible filer, public filing office, and form | No such LLC statement filer, Secretary of State filing, or statutory form. SOS certificate of formation states initial manager/no-manager structure and names initial managers or members, but it is not a statement of authority (§§ 3.005, 3.010) |
| Person or position, grant or limit, and transaction scope | N/A No public statement naming a person/position or filing a grant/limit. Governing persons are statutory agents; officers are agents when governing authority vests actual or apparent authority; company agreement, governing authority, and resolutions allocate power (§§ 3.101, 3.103(b), 101.251-.254) |
| Company identity, addresses, caption, and required contents | N/A No statement-specific company identity, address, affected-statement caption, named-person/position, transaction-scope, or real-property content contract. Certificate contents and optional governance provisions serve a different filing function (§§ 3.005, 3.010) |
| Signer, delivery, effective time, fee, and acceptance | N/A No statement signer, delivery, acknowledgment, effective-time, acceptance, or statement-specific fee rule. Ordinary certificate-formation/amendment filing mechanics and fees do not create public statement-of-authority effects (BOC chs. 3-4) |
| Non-realty reliance, knowledge, and outsider effect | No filed-statement conclusiveness. Ordinary-course act, including an instrument, by a § 101.254(a) agent binds unless agent lacked actual authority and counterparty knew; nonordinary act binds only if authorized under title. No separate value-giving, later-statement, or filed-limitation reliance architecture (§ 101.254) |
| Realty certified copy, recording, and constructive notice | No LLC-statement certified-copy recording or deemed-knowledge rule. Section 101.254(b) includes mortgages and conveyances in ordinary-course acts, but execution, acknowledgment, county recording, title, priority, and notice remain separate |
| Amendment, denial, cancellation, expiration, and dissolution | N/A No statement amendment, denial, cancellation, automatic expiration, renewal, dissolution cancellation, or postdissolution statement route. Later certificate, company-agreement, manager/member, officer, delegation, winding-up, and public-record changes use their own provisions |
| No-device states, agency alternatives, and title boundaries | Use current certificate for manager/no-manager structure and initial names; company agreement and §§ 3.101, 3.103, 101.251-.254 for governing authority, officer power, and outsider agency. None certifies actual/apparent authority, title, value, good faith, knowledge, priority, or protected reliance in a particular deal |
Requirements one by one
Texas has no general public statement-of-authority device
The complete current Texas BOC Chapters 3, 4, and 101 contain no LLC filing that operates like a uniform-act statement of authority. There is therefore no statement-specific filer, named-person or position grant/limit, required caption or address set, signer, fee, effective time, denial, cancellation, five-year expiration, certified-copy realty recording, or postdissolution statement route.
Under BOC §§ 3.005 and 3.010, the public certificate of formation may carry lawful governance provisions and must say whether the LLC initially has managers, then name the initial managers or, for a no-manager structure, the initial members. That formation record is not a statutory statement of authority and does not acquire the missing reliance, constructive-notice, denial, or expiration effects.
The company agreement and certificate identify the governing authority
Section 101.251 gives the company agreement the first word on whether the governing authority consists of managers or members. If the agreement does not answer, the certificate's manager/no-manager statement controls the fallback. Under §§ 3.101 and 101.252, that governing authority manages and directs the business and exercises or authorizes company powers subject to the governing documents and code.
An officer has the authority supplied by the governing documents or the electing or appointing governing authority under § 3.103(b). Section 101.253 separately permits a resolution to delegate governing-authority power to a committee. Those are internal authority sources, not public statement filings.
Outsider effect turns on agency, ordinary course, and knowledge
Under § 101.254(a), each governing person is an agent for company business. An officer is an agent when the governing authority vests the officer with actual or apparent authority.
An act by one of those agents apparently carrying out ordinary-course business binds the LLC—including execution of an instrument, document, mortgage, or conveyance—unless the agent lacked actual authority and the counterparty knew of that lack. An act outside the apparent ordinary course binds only if authorized under the LLC title.
This architecture is not the same as a filed-statement rule. It does not make a filed grant conclusive for a value-giving outsider, make a filed limitation constructive notice, or prioritize later authority statements.
Realty remains outside a statement-of-authority overlay
Section 101.254(b) expressly mentions mortgages and conveyances, but the LLC statute does not add a certified-copy statement recording or deemed-knowledge rule. Execution, acknowledgment, county recording, title, priority, value, notice, and good faith require their own law and transaction facts; this page does not operate that separate land-recording analysis.
What trips people up
- The certificate is not a statement of authority. Naming an initial manager or member does not create the uniform-act filing and reliance scheme.
- The company agreement can change the governing authority. The public certificate is the fallback only when the agreement does not answer.
- Governing persons and officers enter the agency rule differently. An officer needs actual or apparent authority vested by the governing authority.
- Knowledge is load-bearing. Ordinary-course binding turns on both lack of actual authority and counterparty knowledge.
- Realty words do not answer title questions. Mentioning a mortgage or conveyance does not establish execution, recording, priority, or good title.
Common questions
Can a Texas LLC file the uniform-act statement of authority?
Not under the current ordinary LLC provisions. Texas uses its own certificate, company-agreement, governing-authority, officer, delegation, and agency rules.
Does the public certificate conclusively prove current authority?
No. It identifies the initial manager/no-manager structure and names, while the current company agreement, governing authority, appointments, delegations, and transaction facts still matter.
Can a private resolution create constructive notice?
The BOC does not give a private LLC resolution the public reliance or constructive-notice effects of a statutory statement of authority.
Does § 101.254 validate every deed signed by a governing person?
No. It supplies an agency rule with ordinary-course, actual-authority, knowledge, and authorization conditions. It does not decide deed formalities, title, recording, priority, fraud, or other defects.
Statutes and sources
- Tex. Bus. Orgs. Code §§ 3.005, 3.010, 3.101, and 3.103 — certificate governance provisions, initial manager/member disclosure, governing authority, and officer authority. Official current Chapter 3 (accessed August 30, 2026).
- Tex. Bus. Orgs. Code §§ 101.251-.254 — manager/member governing authority, management, delegation, agency, ordinary-course binding, counterparty knowledge, and outside-course authorization. Official current Chapter 101 (accessed August 30, 2026).
Source links
Every statute quoted above, linked, with the date we checked it.
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