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
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.