How to Start an LLC in Texas: Step-by-Step Guide

To start an LLC in Texas, file a Certificate of Formation (Form 205) with the Texas Secretary of State and pay the filing fee (currently about $300). Texas has no annual report fee, but LLCs must file an annual franchise tax report and Public Information Report. You'll also appoint a registered agent, create an operating agreement, and get a free EIN from the IRS. Approval usually takes a few business days online. Texas has no state income tax, which is a big draw, though the upfront filing fee is on the higher side.

Fees and rules change, so the amounts below are approximate — always confirm the current figures on the Texas Secretary of State website. This article is general information, not legal or tax advice.

How much does it cost to start an LLC in Texas?

The main cost is the one-time Certificate of Formation (Form 205) filing fee, currently around $300. Texas has no annual report fee, but LLCs must file an annual franchise tax report and Public Information Report. Most small LLCs owe no franchise tax because they fall under the state's revenue threshold, but the report is still required. For a full breakdown of every possible LLC cost, from registered agents to publication, see how much an LLC costs.

How to start an LLC in Texas, step by step

1. Choose and check your LLC name. Your name must be unique in Texas and include "LLC" or "Limited Liability Company." Search the Texas Secretary of State business database to confirm it's available, and grab the matching domain while you're at it.
2. Appoint a registered agent. Every Texas LLC needs a registered agent with a physical address in the state to receive legal mail. You can be your own agent or hire a service; here's what a registered agent is and how to choose.
3. File your Certificate of Formation (Form 205). Submit the formation document to the Texas Secretary of State, online or by mail, and pay the roughly $300 fee. Approval typically takes a few business days online.
4. Create an operating agreement. This internal document sets out ownership and how the LLC is run. It isn't always filed with the state, but it's strongly recommended even for single-member LLCs.
5. Get an EIN from the IRS. This free federal tax ID lets you open a business bank account, hire employees, and file taxes. Learn what an EIN is and how to apply in minutes.
6. Handle licenses, permits, and taxes. Depending on your industry and city, you may need local business licenses and a seller's permit for sales tax. See how to register a business for the full sequence.

Ongoing requirements for a Texas LLC

Forming the LLC is a one-time step; staying in good standing is ongoing. Texas has no annual report fee, but LLCs must file an annual franchise tax report and Public Information Report. Most small LLCs owe no franchise tax because they fall under the state's revenue threshold, but the report is still required. Missing a required filing can lead to late fees or administrative dissolution, so calendar every deadline the moment you form.

Tip: Open a dedicated business bank account as soon as your Texas LLC is approved and your EIN is issued. Keeping business and personal money separate is what actually preserves the liability protection an LLC provides.

Should you form your LLC in Texas or another state?

If you live and do business in Texas, forming here is almost always the right choice. Forming in a "cheaper" or more famous state usually backfires, because you'll still have to register as a foreign LLC in Texas anyway, which means paying two sets of fees and maintaining two registered agents. For the bigger picture, read what an LLC is and whether an LLC is right for you versus staying a sole proprietor.

Frequently asked questions

How much does an LLC cost in Texas?

The state filing fee is currently around $300 one time. Texas has no annual report fee, but LLCs must file an annual franchise tax report and Public Information Report. Confirm the current amounts with the Texas Secretary of State, since fees change.

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

Online filings are usually approved in a few business days online. Mail filings take longer, and some states offer paid expedited processing if you're in a hurry.

Do I need a registered agent for a Texas LLC?

Yes. Texas, like every state, requires an LLC to have a registered agent with a physical in-state address. You can serve as your own agent or hire a commercial service for privacy and reliability.

Keeping Texas's specific steps, fees, and deadlines straight is exactly what Scafflow is built for. It turns forming your LLC and everything after it into a personalized, ordered checklist across legal, finance, brand, website, and marketing, so nothing slips through the cracks.

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