How to Start an LLC in Texas (Step-by-Step Guide)

Forming an LLC in Texas requires filing a Certificate of Formation with the Texas Secretary of State and paying a $300 filing fee. The process takes about 10-12 business days for standard processing.

Follow these steps to start your Texas LLC in 2026.

How to Start an LLC in Texas (6 Steps)

Step 1: Name Your Texas LLC

Your LLC name must be distinguishable from other business names registered in Texas. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Search the Texas Comptroller’s business name database to check availability. You can also reserve a name for 120 days by filing an Application for Reservation with the Secretary of State ($40 fee).

Texas naming rules:

• Cannot include words suggesting it’s a bank, insurance company, or government entity without proper authorization
• Cannot be the same as or deceptively similar to an existing entity registered in Texas
• Must include an LLC designator

Step 2: Choose a Registered Agent

Texas requires every LLC to have a registered agent with a physical street address in Texas. The registered agent receives legal documents and official correspondence on behalf of your LLC.

You can serve as your own registered agent (if you have a Texas address), or use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $300 state fee.

Step 3: File Your Certificate of Formation

File Form 205 (Certificate of Formation) with the Texas Secretary of State. You can file online through SOSDirect or by mail.

Filing details:

• Filing fee: $300
• Online filing: SOSDirect (recommended — faster processing)
• Processing time: 10-12 business days (standard), 1-2 business days (expedited, additional fee)

Information required:

• LLC name
• Registered agent name and address
• Whether the LLC is member-managed or manager-managed
• Organizer name and address
• LLC purpose (use “any lawful purpose”)
• Duration (perpetual is standard)

Step 4: Create an Operating Agreement

Texas doesn’t legally require an operating agreement, but having one is strongly recommended. It establishes ownership structure, profit distribution, and management responsibilities — and it’s usually required to open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. You need an EIN to open a business bank account, hire employees, and file taxes.

Step 6: File Your Franchise Tax Questionnaire

After forming your LLC, the Texas Comptroller will mail you a franchise tax questionnaire. Complete and return it within 90 days. This sets up your LLC’s franchise tax account.

Good news for small businesses: Texas LLCs with annual revenue under $2.47 million owe $0 in franchise tax. You still need to file a No Tax Due Report annually, but there’s no payment required.

Texas LLC Costs

Total first-year cost: $300-$599 (depending on whether you use a registered agent service). See our complete guide to LLC costs by state.

Texas LLC Taxes

Texas has no personal state income tax, making it one of the most tax-friendly states for LLC owners.

• State income tax: None
• Franchise tax: 0.375% to 0.75% of revenue for LLCs over $2.47M in annual revenue. LLCs under the threshold file a No Tax Due Report.
• Sales tax: 6.25% state rate, plus up to 2% local tax (total up to 8.25%)
• Federal taxes: Standard pass-through taxation — profits pass to members’ personal returns

Annual Requirements for Texas LLCs

• Public Information Report: Due May 15 each year, filed with the Texas Comptroller. No fee.
• Franchise Tax Report: Due May 15 each year. Most small LLCs file the No Tax Due Report ($0).
• Maintain a registered agent: Must have a registered agent with a Texas address at all times.

Frequently Asked Questions

How long does it take to form an LLC in Texas?

Standard processing takes 10-12 business days when filed online through SOSDirect. Expedited processing (additional fee) takes 1-2 business days.

Do I need a business license in Texas?

Texas doesn’t have a general state business license. However, you may need local licenses or permits depending on your city, county, and industry. Check with your local city hall or county clerk.

Can I form a Texas LLC if I live in another state?

Yes. You can form a Texas LLC regardless of where you live. However, if you primarily do business in another state, you may be better off forming your LLC there instead. See our how to start an LLC guide for more on choosing the right state.

Does Texas require an operating agreement?

No, Texas doesn’t legally require an operating agreement. However, we strongly recommend creating one. It protects your personal liability and most banks require one to open a business account.

What’s the Texas franchise tax threshold?

Texas LLCs with total annual revenue of $2.47 million or less owe $0 in franchise tax. You still need to file a No Tax Due Report by May 15 each year.

Start an LLC in Another State

Click your state below for a step-by-step formation guide with filing fees, requirements, and timelines.