How to Start an LLC in Texas (2026)
The slowest way to file in Texas is the only one you can pay to speed up. Post beats SOSDirect once you add the $50 expedite fee. Here is every step, in order.
In This Article
- Overview
- Quick Facts
- Introduction
- Choose a Name for Your Texas LLC
- Choose a Registered Agent in Texas
- File Your Certificate of Formation with Texas
- Get an EIN from the IRS
- Create an Operating Agreement for Your Texas LLC
- Open a Business Bank Account for Your Texas LLC
- Federal BOI Reporting
- Top 3 LLC Services
- FAQ
- Next Steps
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: Aug 2026- Filing Fee (Online)
- $300
- Processing Time
- 10-15 business days
- Expedited Available
- Yes (2 to 3 business days / $50)
- Public Information Report
- $0 (annual)*
- State Income Tax
- No
- Sales Tax Rate
- 6.25%
- Filed With
- Texas Secretary of State
- Last Verified
- August 20, 2026
* Public Information Report: $0, due May 15 each year
What Makes Forming an LLC in Texas Different
An LLC puts a wall between you and the business. Say the company gets sued, or takes on debt. Your house, your car and your savings sit on the other side of that wall. That separation is the whole point. It is why most founders pick an LLC over a sole proprietorship.
Texas has no state income tax. It does have a franchise tax. The no tax due threshold is $2.65 million of annualized revenue. Below that you owe nothing, and you file no franchise tax report at all. You do still file a Public Information Report every year. That one is free. It is also the filing that matters most. Missing it can cost you the protection you formed the LLC for. The $300 fee is higher than most states. What it buys is a state with no recurring report fee behind it.
The rest is straightforward. You pick a name, name a registered agent, and file Form 205. Then an EIN, an operating agreement, and a bank account. The paperwork is an afternoon. The waiting is 10-15 business days through SOSDirect, or 4-8 weeks by post. Since July 2026, Texas will move a posted filing to the front of the queue for $50.
Choose a Name for Your Texas LLC
Your name must follow Texas naming rules. It also has to be distinguishable from every other entity on file with the Secretary of State.
Your name has to be distinguishable from every entity already on file with the Secretary of State. Adding a word or shuffling letters will not do it. Search the Secretary of State's own records through SOSDirect before you file. A search costs $1. The $1 is waived if you file or order on the results, so a real search costs nothing. The Comptroller's Taxable Entity Search is a different database. It is not what your name gets checked against.
Search Texas entity names on SOSDirect →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 holds a name for 120 days for $40. Most states give you less. Worth doing if you are not ready to file yet.
Pro Tip
The Secretary of State will give you a preliminary read on a name before you file. Call (512) 463-5555 or email [email protected]. It is not binding, so do not order signage or sign a lease on the strength of it.
Choose a Registered Agent in Texas
Every Texas LLC needs a registered agent. That means a physical street address in the state, and someone there to accept legal documents.
A registered agent takes legal notices, tax mail and official state post on behalf of your LLC. Texas wants either a person who lives in the state or an entity authorised to operate here. The address must be a street address. A P.O. box will not do, and somebody has to be there during business hours.
Compare Texas registered agent services →Your Three Options
- Be your own registered agent. It is free. But your home address goes on the public record, and you have to be there in business hours.
- Ask someone you trust. A friend, relative or associate can serve, if they live in Texas and have a street address.
- Hire a professional service. Usually $50 to $300 a year. It keeps your address off public filings and makes sure 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 step creates the LLC. You send Form 205 and the $300 filing fee to the Texas Secretary of State.
Form 205 is the Certificate of Formation. It asks for your name, your registered agent, and your organizer's name and address. It also asks the purpose of the LLC, and whether members or managers will run it. A general purpose statement is fine. File it through SOSDirect, or send the paper form by post.
Compare Texas LLC formation services →File Online via SOSDirect
File by Mail
Post your completed form and $300 payment to Secretary of State, P.O. Box 13697, Austin, TX 78711-3697.
Expedited service is the part of this that changed in 2026. The Secretary of State finished rolling out Texas Express on 14 July 2026. There are three tiers now. Standard expedited costs $50 per document and runs about two to three business days. Next-day costs $500. Same-day costs $750 for documents received by noon. Each sits on top of the $300 filing fee. What you are buying is position in the queue, not a guaranteed approval.
Read the routes before you pick one. The Secretary of State lists standard expedited for documents sent by post, in person, or by courier. Same-day and next-day go to [email protected] or by hand. SOSDirect appears on neither list. So the slow paper route is the one you can pay to move forward, and the convenient online route is the one you cannot.
Texas Express fees and tiers at the Secretary of State →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: Northwest Registered Agent
$39 + state fee. Includes registered agent, business address, domain, website, email, and phone. No upsells.
Get an EIN from the IRS
An EIN is a federal tax ID. You need one to open a business bank account, hire anyone, or file taxes.
Apply on the IRS website. It is free. The online form takes about ten minutes and the number comes back immediately. You can also use Form SS-4 by fax or post, but the online route is far quicker.
Apply for your EIN on IRS.gov →Get one even as a single member LLC. Banks ask for it. A separate tax ID also keeps your Social Security number off your business paperwork.
Create an Operating Agreement for Your Texas LLC
An operating agreement sets out how your LLC is owned and run. Texas does not require one. Skipping it is still a mistake.
An operating agreement is an internal document. It sets out who owns what, how decisions get made, and what happens when a member leaves. You do not file it with the state. You keep it with your business records. Sole member? A one-page version still helps. It shows the LLC is a separate legal entity, which is what your liability protection rests on.
Sections to Include
State Specific
Texas does not require one. Without it, the state's default LLC rules govern your business. Those defaults may not match what you and your co-owners actually agreed.
Open a Business Bank Account for Your Texas LLC
A business bank account keeps company money separate from yours. That separation is what your liability protection rests on.
Mixing personal and business money is the fastest way to lose the protection you just paid for. Say a court finds you treated company money as your own. It can pierce the veil and hold you personally liable for business debts. A separate account makes that argument much harder to run. Open one early.
What to Bring to the Bank
- Your filed Certificate of Formation, stamped or approved by the Secretary of State
- Your EIN confirmation letter from the IRS
- Photo ID for every member opening the account
- Your operating agreement, which some banks ask for
- An opening deposit, and the 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.
Federal BOI Reporting
No. FinCEN exempted every company formed in the United States from beneficial ownership reporting in an interim final rule published 26 March 2025 and applied from 21 March 2025, then made that exemption permanent in a final rule published 11 August 2026 and effective 14 August 2026. Only entities formed under foreign law and registered to do business in a US state still report.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in Texas. Here's how they compare.
| Feature | Northwest Registered Agent Best Overall | ZenBusiness Best for LLC Formation | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $39 + state fees | $0 + state fees | $0 + state fees |
| Formation Speed | Same-day filing | 7-10 days, 1 day on Pro | 2-14 business days |
| Support | Lifetime Corporate Guides | Phone, Chat, Email | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 1998 | 2015 | 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 Northwest Registered Agent. $39 + state fee includes registered agent, business address, domain, and more.
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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