How to Start an LLC in Texas (2026)
Filing a Texas LLC costs $300 and involves submitting a Certificate of Formation to the Texas Secretary of State. Here's exactly how to do it, step by step.
In This Article
What You'll Learn in This Guide
This guide walks you through every step to legally form a Limited Liability Company (LLC) in Texas — from picking a name to staying compliant year after year. We've kept it practical, current, and free of unnecessary fluff.
Note
Texas LLC formation costs $300 in state fees. Most founders complete the process in 10-15 business days, either DIY or through a formation service starting at $0.
Texas LLC: Quick Facts
Last Verified: Feb 2026- Filing Fee (Online)
- $300
- Processing Time
- 10-15 business days
- Expedited Available
- No
- Public Information Report
- May 15 each year
- State Income Tax
- No
- Sales Tax Rate
- 6.25%
- Filed With
- Texas Secretary of State
- Last Verified
- February 21, 2026
What Makes Forming an LLC in Texas Different
A Texas LLC separates your personal assets from your business liabilities. If your LLC gets sued or takes on debt, your house, car, and personal savings stay protected. That legal separation is the single biggest reason founders choose an LLC over operating as a sole proprietorship.
Texas has no state income tax, which is a real advantage. But the state does have a franchise tax that applies to LLCs earning above $2.47 million in revenue. Below that threshold, you owe $0 in franchise tax, though you still need to file a report each year confirming that. The $300 filing fee is higher than many states, but you won't face additional annual report fees on top of it.
The process itself is straightforward. You'll pick a name, designate a registered agent, file your Certificate of Formation (Form 205), get an EIN from the IRS, put together an operating agreement, and open a business bank account. Most founders can handle this in an afternoon, then wait 4-8 weeks for mail processing or potentially faster if filing online.
Choose a Name for Your Texas LLC
Your LLC name must follow specific Texas naming rules and be distinguishable from every other entity on file with the Secretary of State.
Texas requires your LLC name to be distinguishable from any other business entity already registered with the Secretary of State. You can't just add a word or rearrange letters to get around an existing name. Run a search first so you don't waste your filing fee on a name that gets rejected.
Search available names →Texas LLC Naming Rules
Optional Name Reservation
- Fee: $40 to reserve your name
- Duration: reserved for 120 days
- File with the Texas Secretary of State before submitting your Certificate of Formation
State Specific
Texas lets you reserve a name for 120 days for $40, which is longer than most states offer. Worth doing if you're not ready to file right away.
Pro Tip
Search the Texas Comptroller's database at mycpa.cpa.state.tx.us/coa to check whether your desired name is available before filing anything.
Choose a Registered Agent in Texas
Every Texas LLC must have a registered agent with a physical street address in the state who can accept legal documents on your behalf.
A registered agent receives legal notices, tax correspondence, and official state mail for your LLC. Texas requires this to be either an individual who lives in the state or a business entity that's authorized to operate in Texas. The agent must have a physical street address (not a P.O. box), and they need to be available during normal business hours.
Your Three Options
- Be your own registered agent. Free, but your home address becomes public record and you must be available during business hours.
- Ask someone you trust. A friend, family member, or business associate who is a Texas resident with a physical address can serve.
- Hire a professional registered agent service. Typically $50-$300 per year. Keeps your personal address off public filings and ensures nothing gets missed.
State Specific
In Texas, your LLC cannot serve as its own registered agent. A real person or a separate authorized business entity must fill this role.
File Your Certificate of Formation with Texas
This is the official step that creates your LLC. You'll submit Form 205 to the Texas Secretary of State along with the $300 filing fee.
Form 205 is the Certificate of Formation for a Texas LLC. You'll provide your LLC name, registered agent information, the names and addresses of your organizers, the LLC's purpose (a general statement works fine), and whether the LLC will be member-managed or manager-managed. You can file online through SOSDirect or by mailing the completed form.
File Online via SOSDirect
File by Mail
Mail your completed form and $300 payment to Secretary of State, P.O. Box 13697, Austin, TX 78711-3697. Expedited processing is available and typically takes 10-12 business days.
Pro Tip
The $300 fee covers the creation of your LLC entity only. Budget separately for your name reservation, registered agent, and any expedited processing.
Recommended: ZenBusiness
Beginner-friendly LLC formation with transparent pricing and a free starter option. From $0 + state fees.
Get an EIN from the IRS
An EIN is a federal tax ID number for your LLC. You'll need it to open a business bank account, hire employees, and file taxes.
Apply for your EIN directly on the IRS website at no cost. The online application takes about 10 minutes, and you'll receive your EIN immediately. You can also apply by fax or mail using Form SS-4, but the online method is the fastest by far.
Apply for your EIN on IRS.gov →Even single-member Texas LLCs should get an EIN. Banks will require one to open a business account, and having a separate tax ID keeps you from using your Social Security number on business documents.
Create an Operating Agreement for Your Texas LLC
An operating agreement defines how your LLC is owned, managed, and run. Texas doesn't require one by law, but skipping it is a mistake.
An operating agreement is an internal document that spells out who owns what, how decisions are made, and what happens if a member wants to leave. You don't file it with the state. You keep it with your business records. If you're the sole member, a simple one-page version still helps establish that your LLC is a separate legal entity, which strengthens your liability protection.
Sections to Include
State Specific
Texas does not legally require an operating agreement. However, without one, Texas default LLC laws will govern your business. Those defaults may not match what you and your co-owners actually agreed to.
Open a Business Bank Account for Your Texas LLC
A dedicated business bank account keeps your personal and business finances separate, which is essential for maintaining your LLC's liability protection.
Mixing personal and business money is one of the fastest ways to lose the liability protection your LLC gives you. If a court finds that you treated your LLC's money as your own, it can "pierce the veil" and hold you personally responsible for business debts. A separate business account makes that much harder to argue.
What to Bring to the Bank
- Your filed Certificate of Formation (stamped or approved copy from the Secretary of State)
- Your EIN confirmation letter from the IRS
- A government-issued photo ID for all members opening the account
- Your operating agreement (some banks request this)
- An initial deposit (amount varies by bank)
Pro Tip
Many Texas banks and credit unions offer free business checking accounts for small LLCs. Compare a few options before committing.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in Texas. Here's how they compare.
| Feature | ZenBusiness Best Overall Value | Northwest Registered Agent Best Privacy | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $0 + state fees | $39 + state fees | $0 + state fees |
| Formation Speed | 1-10 business days | Same-day filing | 2-14 business days |
| Support | Phone, Chat, Email | Lifetime Corporate Guides | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 2015 | 1998 | 2014 |
| Get Started → | Get Started → | Get Started → |
Frequently Asked Questions
What to Do Next
Once your Texas LLC is approved, take these steps to set your business up for success.
Get an EIN
Apply for free in about 10 minutes at IRS.gov — required before opening a bank account or hiring anyone.
Open a Business Bank Account
Keep personal and business finances separate from day one. Bring your EIN, Articles of Organization, and a government ID.
Create an Operating Agreement
Even if Texas does not require one, an operating agreement protects your liability shield and defines how the LLC is managed.
File Your Public Information Report
Set a calendar reminder now. Missing your Public Information Report deadline can result in late fees or administrative dissolution.
Ready To File?
Start your Texas LLC with ZenBusiness — guided filing and compliance support included.
About the Author
Legal & Compliance Analyst
Daniel grew up in the shadow of Silicon Valley but chose the legal route over engineering, working as a paralegal for a corporate law firm specializing in mergers and acquisitions. He realized that early-stage founders were constantly making catastrophic legal mistakes because they couldn't afford a $500/hour attorney, prompting his move to B2B media.
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