How to Start an LLC in Texas

Filing Fee: $300 | No Annual Fee | Processing Time: 1-3 business days

Texas LLC Costs

$300

Filing Fee

$0

Annual Fee

Public Information Report only

1-3 days

Processing Time

5 Steps to Form an LLC in Texas

1Choose a Name for Your Texas LLC

Your Texas LLC name must comply with state requirements:

  • Include "Limited Liability Company," "Limited Company," "LLC," "L.L.C.," "LC," or "L.C."
  • Be distinguishable from other Texas businesses
  • Not imply government affiliation
  • Not include restricted words without proper licensing

Name Reservation: You can reserve your LLC name for 120 days by filing Form 501 with the Texas Secretary of State. The fee is $40.

2Appoint a Texas Registered Agent

Every Texas LLC must have a Registered Agent. Your agent must:

  • Have a physical street address in Texas (PO boxes not allowed)
  • Be available during normal business hours
  • Consent to serve as your Registered Agent

3File Certificate of Formation

File Form 205 (Certificate of Formation) with the Texas Secretary of State. You can file:

  • Online: Through SOSDirect (sosdirect.ws)
  • By Mail: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697
  • In Person: James Earl Rudder Office Building, 1019 Brazos St, Austin, TX 78701

Filing Fee: $300
Processing: 1-3 business days online, 2-3 weeks by mail

4Create an Operating Agreement

While not required by Texas law, an Operating Agreement is highly recommended:

  • Protects your limited liability status
  • Prevents disputes among members
  • Allows customization of your LLC rules
  • Required by banks for business accounts
Download a free Texas LLC Operating Agreement →

5Obtain an EIN from the IRS

An Employer Identification Number (EIN) is free from the IRS and is required for:

  • Opening a business bank account
  • Filing taxes
  • Hiring employees

Texas LLC Ongoing Requirements

Public Information Report & Franchise Tax

Due: May 15th each year
Fee: $0 (no annual fee for most LLCs)

Texas requires LLCs to file a Public Information Report and pay franchise tax annually. Most small businesses owe no franchise tax (threshold is $1.23 million in annual revenue).

Late Filing Penalty: $50 per late report

Start Your Texas LLC Today

Texas has no annual LLC fees, making it a cost-effective choice for many businesses.

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